Entain reveals plans for BetCity acquisition

The leading sports betting and gaming company, Entain plc, announced today it plans to acquire BetEnt B.V., which is trading under BetCity from Sports Entertainment Media B.V. The iGaming industry leader revealed that it plans to acquire the entire share capital of BetCity for an initial consideration of €300m as well as deferred contingent consideration of up to €550m.

The terms of the acquisition will see an initial consideration payment in cash of €300m. This payment is expected to be completed early next year and it is based on the financial performance of BetCity during this year. On the other hand, Entain explained that additional contingent payment "will be paid in early 2024, based on 10x BetCity's EBITDA for the financial year 2023, less amounts already paid out." Last but not least, €50m of final contingent payment will be completed once the brand has successfully migrated to Entain's platform and synergies are completed.

Based on the current expectations, the total consideration payable is expected to be €450m. However, Entain explained that depending on the performance of BetCity, the maximum consideration for the acquisition is capped at €850m.

In a press release on Tuesday, BetCity's CEO, Melvin Bostelaar, said: "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."

Bostelaar acknowledged that Entain is undoubtedly a global leader within the iGaming market that offers leading technology. He pointed out that BetCity's core values and philosophy in responsible gaming align well with Entain's goals. In conclusion, Bostelaar said he is looking forward to the success the acquisition will bring.

According to Entain, members of BetCity's current leadership team will remain a part of the company. Additionally, BetCity's current CEO, Bostelaar, will also remain a part of the combined entity. The acquisition is expected to be completed during the second half of this year.

Jette Nygaard-Andersen, Entain's CEO, added that the company is delighted to join forces with BetCity. She pointed out that the acquisition creates new opportunities in the newly regulated market in the Netherlands.

Nygaard-Andersen said that by combining BetCity's local expertise with Entain's leading customer-facing platform, the acquisition will bring new experiences for Dutch customers. She pointed out the takeover reaffirms Entain's growth plans and revealed that the company is looking forward to its successful collaboration with BetCity and its leadership team.

Currently, BetCity is among the leading online sports betting and gaming operators in the Dutch market. The brand received a gaming license from the Kansspelautoriteit, which is the Dutch Gaming and Gambling Authority, back in October 2021.

Image credit: Entain plc