Entain had explained that it was now using excess cash on acquisitions this year rather than shareholder payouts after the bookmaker in the past year saw U.S. rival DraftKings and casino operator MGM make takeover approaches for its business, though neither resulted in a deal.
The British gambling group said BetCity’s offering was highly complementary to its bwin and Party brands, which are awaiting approval to operate in the Netherlands.
Entain, which owns the Ladbrokes and Coral betting firms, said it would acquire BetCity from Sports Entertainment Media B.V. for an initial consideration of 300 million euros plus a deferred contingent consideration of up to 550 million euros.
Jette Nygaard-Andersen, CEO of Entain, comments: “We are delighted that BetCity is joining Entain and are excited by the significant opportunities in the newly regulated Dutch market. This acquisition will provide customers with an even better experience as we combine BetCity’s local expertise and brand alongside Entain’s market leading, customer focused platform.”
“This transaction further underpins our growth strategy of operating in attractive regulated markets. We look forward to working with Melvin and the BetCity team,” Nygaard-Andersen added.
Melvin Bostelaar, CEO of BetCity, states: “We are happy to be joining forces with a world-class group in Entain. Together we will be well-placed to maintain a strong market position in the Dutch market for the coming years. Entain’s market leading platform, technology, established brands and global scale provides a fantastic opportunity to expand and enrich our customer offering.”
“Both BetCity and Entain position the customer at the heart of everything we do, with Entain’s core values and philosophy in responsible gaming, compliance and company-culture seamlessly aligning with those of BetCity. We look forward to a bright future together,” Bostelaar concludes.
Source: GMB
