Spiffbet chases expansion with two more acquisitions
The acquisition of Sir Jackpot and Live Lounge constitutes Spiffbet’s seventh acquisition in the same number of months resulting in Spiffbet today operating ten European online casino brands in parallel with the original games development under the brands STHLM Gaming and Spiffbet Casino.
Spiffbet announced in March last year the intention to be an engine for the consolidation of the European online casino market. The strategy is initially to grow by acquisitions to achieve synergies and economies of scale. The next step is to grow the acquired brands and expand the operations to emerging markets.
Spiffbet has signed an agreement with Livelounge Ltd, a company registered in the British Virgin Islands, to acquire the online casinos Sir Jackpot and Live Lounge for a maximum of SEK 2.5 million. The transaction means that Spiffbet acquires the rights to the domains sirjackpot.com and livelounge.com with associated customer databases and other intellectual property rights. The acquisition includes two employees who will be integrated into Spiffbet’s organization.
The acquisition will be completed with two payment tranches. One tranche consists of a promissory note of SEK 2 million to be redeemed after approximately two months either in cash or by set-off against newly issued Spiffbet shares, and the second tranche through a cash payment of SEK 0.5 million which will be paid out provided that certain conditions are met by 30 June 2020.
“We continue to deliver on our growth and acquisition strategy. Sir Jackpot and Live Lounge contribute to our existing business with both sales and earnings, which allows us to allocate fixed costs on a larger revenue base and increase our bargaining power vis-à-vis suppliers and partners. In addition, we are adding two qualified employees, which is important in the growth phase we are in now.” says Spiffbet’s CEO, Henrik Svensson, in a comment.
“This is a good add-on acquisition that gives us two more established brands to work with. Thanks to the fact that the business is on the same platform as us and with the same support system in general, there will be minimal measures to integrate the business. We also welcome the two employees as employees of Spiffbet. It suits us perfectly to strengthen the organization now that we are accelerating the business of acquisitions made in 2020 “, comments Maria Boelius, head of Spiffbet’s casino.