Entain has agreed to acquire BetCity for an initial consideration of €300 million and a deferred consideration of up to €550 million. The sports betting, gaming and interactive entertainment group has agreed to acquire the entire share capital of BetEnt BV, which is traded under the name BetCity.nl, from Sports Entertainment Media BV
The initial €300 million is to be paid in cash on completion, with a balance payment at the beginning of the next year based on BetCity’s actual performance in the 2022 financial year. A further payment will be paid at the beginning of 2024, based on by 10x BetCity’s EBITDA for the year 2023, less amounts already paid.
And finally, a €50 million payment will be made on delivering synergies and successful migration to the Entain platform. BetCity CEO Melvin Bostelaar and other key members of the leadership team will remain with the group.
“We are delighted that BetCity is joining Entain and excited about the significant opportunities in the newly regulated Dutch market. This acquisition will provide customers with an even better experience as we combine BetCity’s expertise and local brand with Entain’s market-leading, customer-focused platform,” said Jette Nygaard-Andersen, CEO of Entain.
“This transaction further reinforces our growth strategy of operating in attractive regulated markets. We look forward to working with Melvin and the BetCity team.”
Entain to finalize purchase in the second half
The acquisition is expected to close during the second half of 2022, with the initial consideration to be financed with existing cash resources and drawdowns from the company’s line of credit.
Bostelaar commented: “We are happy to join forces with a world-class group. Together, we will be well positioned to maintain a strong position in the Dutch market for years to come. Entain’s market-leading platform, technology, established brands and global scale provide a fantastic opportunity to expand and enrich our customer offering.”
“Both BetCity and Entain place the customer at the heart of everything we do, with Entain’s core values and philosophy of responsible gaming, compliance and company culture perfectly aligned with those of BetCity. We look forward to a bright future together.”
