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  1. #1
    Triple7 is offline Private Member
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    Default Betsson closes Georgian accounts

    Betsson acquires a leading gaming operator in the Georgian market
    Betsson AB acquires the privately owned gaming operator Europe-Bet based in Georgia.
    The company is licensed in, as well as targeting, the regulated Georgian market, a market
    with conditions similar to the new locally regulated gaming markets within the EU. As a
    result of the acquisition, Betsson is becoming the second largest local online gaming
    operator in Georgia with close to 30% market share, meanwhile strengthening its strategic
    market position in the region.

    "Europe-Bet has established a strong brand with a competitive multi-product offering in
    the locally regulated market of Georgia. Together with Betsson’s technology, a foundation
    for profitable and sustainable growth within and outside Georgia is created”, says Magnus
    Silfverberg, CEO & President of Betsson.

    In 2014, revenues amounted to USD 52.4 million, where online operations accounted for
    USD 40.8 million, and the remaining part came from landbased business, which to a large
    extent supports the online business. The online business is mainly Sportsbook driven,
    which accounted for 44% of total revenue in 2014. Total EBIT amounted to USD 20.0
    million, of which USD 17.9 million is attributed to the online operations. The EBIT margin
    was 38.1% and the company has delivered solid double digit growth in the last years.
    Betsson acquires the company from a group of entrepreneurs. Some of the founders will
    continue in strategic positions after the acquisition. Betsson has also retained other key
    employees to continue to operate the business.

    Betsson acquires the shares from the sellers for an initial purchase consideration of USD
    50 million, which corresponds to 2.5 times EBIT in 2014. In addition to the initial purchase
    consideration, a remaining amount of maximum USD 35 million may become payable after
    one year based on that the gambling regulation in Georgia remains unchanged. This
    implies a maximum total purchase consideration of USD 85 million, which corresponds to
    4.3 times EBIT for 2014.

    The acquisition is financed through a renewal of a credit facility amounting to EUR 35
    million, as well as a new credit facility of SEK 700 million. These facilities are both
    revolving credit facilities which give an attractive financial flexibility.
    Closing of the deal is expected to take place during July.

    Gernandt & Danielsson Advokatbyrå acts as legal advisers to Betsson in connection with
    the transaction and PwC acts as financial adviser. On the sell-side, Legal Partners
    Associated LLC acts as legal advisers and EY acts as financial adviser.

    Please note that will not be operating in Georgia as from 31st of July 2015 10:00 CET. This will regrettably result in the closure of all Georgian accounts.

    Any available funds on player accounts will need to be withdrawn by the above date. Please note that as from Thursday the 23rd of July, player accounts will be limited to withdrawals only.

    So, affiliates, bye bye to your Georgian players. Just like they did in the UK.

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