The online casino and sports book operator GVC Holding just announced that they have entered a joint venture agreement with the newly opened Betit Holdings, acquiring 15% of the company for a massive €3.5 million. The deal is awaiting approval from the Lotteries and Gaming Authority in Malta and once finalized, GVC Holding will get seats on the Betit board and have a call option to get the outstanding shares balances, which cannot be exercised until July 2017, but also no later than September 2017.
Should GVC Holding decide not to use their option, Betit can require GVC Holding to acquire the shares in Betit for a price which will be determined by revenues in regulated and unregulated markets. The deal will be completed if different conditions will be fulfilled by GVC Holding, most importantly if they can raise the necessary capital for the deal.
The deal will allow GVC Holding to expand into the lucrative Scandinavian territory, which is a target area that GVC Holding has not been really present in before. This has been a big wish for GVC Holding and with the deal it seems that they moved one step closer to realizing it.
"The lucrative Scandinavian market has been on our radar for some time and we are delighted to be working with the entrepreneurial team at Betit who have a proven track record in the Scandinavian egaming markets, and have already grown the business from a standing-start five months ago to generating revenues of over €40,000 per day now,” Kenneth Alexander, CEO of GVC Holding said.
“By entering into this joint venture, we believe that GVC can diversify its revenue streams and significantly enhance the future dividend prospects and valuation of the Group for a minimal initial outlay and is similar to what has been achieved through GVC’s Betboo acquisition in Latin America.” Alexander added.