Spiffbet to acquire Manisol Gaming in SEK30m deal
Spiffbet has signed a letter of intent with the owners of Manisol Gaming regarding the acquisition of the company.
The ambition is to complete the acquisition during February 2021. The acquisition is conditional on satisfactory due diligence and that the parties agree on a final share transfer agreement.
The acquisition is intended to be financed through a private placement of SEK 41 million decided by Spiffbet’s Board of Directors in accordance with authorization from the Annual General Meeting on May 22, 2020 and the completion of which is conditional on the final acquisition of Manisol. The issue is fully secured through subscription commitments.
The issue price is 37.5 öre per share, which means a discount at the time of the offer of approximately 4 percent against the current share price and a discount of approximately 10 percent against the average volume-weighted average value of the share price over the past 10 trading days. The reasons for deviating from the shareholders’ preferential rights are Spiffbet’s need to quickly secure financing of the planned acquisition.
Manisol mainly operates casinos in Europe via the same platform as Spiffbet, mainly under the Scandibet and TurboVegas brands. Manisol is a well-established company with 10 employees in Malta.
The acquisition of Manisol increases Spiffbet’s casino sales by more than 50 percent, calculated from the results of recent months for each business. The acquisition is also rooted in Manisol’s key employees. The acquired business is expected to be relatively easy to integrate into the other business in that Manisol already works with the same technology platforms as Spiffbet’s other casino operations. There are also clear synergies to be found in both organizations with the merger.
The initial purchase price is paid in the form of a reverse to the sellers of SEK 20 million. In addition, Spiffbet takes over liabilities of SEK 10 million, which corresponds to a total initial purchase price on a debt-free basis of approximately SEK 30 million. The reverse shall be redeemed within two months either in cash or by payment with 50,000,000 newly issued Spiffbet shares.
“It is very fun to find a port for Manisol at Spiffbet. There are both financial muscles and, as with us, a will to drive growth. Both companies have a good organization with different qualities that I think will work well together. The companies really complement each other and can utilize each other’s strengths. It will be very fun to follow the business both as a major shareholder and strategic advisor in the future. And we can now significantly increase the pace of the investments we have already begun with establishment in additional markets, both in and outside Europe ” , says Johan Styren.
Manisol will be integrated into Spiffbet’s casino operations, led by Maria Boelius. “We really welcome Manisol with all employees. It will be a perfect reinforcement of our team and solve part of our recruitment needs. It is also an asset to have Johan Styren as a sounding board in the future with his solid industry experience. In one fell swoop , our conditions for growing and creating profitability are improved in a fantastic way, ” adds Maria Boelius.
With this acquisition, Spiffbet reaches a critical mass and becomes a player to be reckoned with in the gaming industry. This also opens up opportunities for major acquisitions and structural deals in the future. The ambition is to get the maximum return on the advantage of being listed on the stock exchange, our proven ability to carry out acquisitions and the large cost advantages that can be achieved thanks to the higher turnover. This also strengthens the synergy effects between gaming production and our casino operations. We will continue to act as a locomotive for acquisitions and a catalyst for structural business. ” comments Henrik Svensson, CEO of Spiffbet.