MRG acquires iGaming operator 11.lv
23 May 2018
(PRESS RELEASE) -- As part of its strategy to establish operations in the Baltics, MRG has signed an agreement to acquire a majority of the Latvian gaming operator 11.lv.
The Baltics - Estonia, Latvia and Lithuania - is regulated across all countries with national regulations and licensing systems. The region is characterized by robust growth for iGaming. The Baltic market for iGaming grew by 45% in 2017.
”This is a major step in our strategy to expand into locally regulated markets,” says Per Norman, CEO of MRG. “We foresee excellent growth opportunities for our strong Mr Green and Redbet brands also in the Baltics.”
11.lv is a well-known Latvian iGaming brand with a focus on sportsbook and the third-largest iGaming operator in Latvia. The company has a gaming license in Latvia and offers betting, casino and live casino. Revenues amounted to €944k in Q118 and EBITDA was €162k. The revenue growth was 44% from Q117.
MRG acquires 75% of the shares. Two of the founders, who stay in the company, keep 25% of the shares. The purchase price amounts to EUR 2.8 million based on an enterprise value of €3.7 million. The purchase price is paid in cash. The price is calculated on enterprise value (debt free basis). 11.lv has 15 employees, all based in Riga, Latvia.
“11.lv has a strong brand recognition in Latvia and will be the base for our expansion in the Baltics”, continues Per Norman. “Our first step is to launch Mr Green in Latvia which, together with 11.lv, give us a broad, attractive offering for the Baltic market.”