Spiffbet seals Manisol Gaming acquisition

Spiffbet has secured the acquisition of Malta-based casino operator Manisol Gaming as it continues its aggressive M&A spree.

Spiffbet will initially pay SEK20m (£1.7m), which can be redeemed within two months by Manisol, either in cash or by 50 million newly issued Spiffbet shares.

Spiffbet will also take over liabilities worth SEK10m, meaning the total initial purchase price will amount to SEK30m (£2.6m).

An additional SEK6m will also be paid no later than 31 December 2022 if a number of growth targets are hit.

This SEK6m can once again be redeemed in cash or the issue of new shares.

The merger is set to complete in February 2021 and is conditional based on due diligence and a shared agreement from both parties on final share transfer.

Spiffbet will raise capital for its latest purchase via a private placement worth SEK41m, which is set to be secured through subscription commitments.

The issue price of 37.5 öre per share is worth around 4% less than the group’s current share price, with Spiffbet opting to secure financing quickly ahead of the Manisol takeover.

Spiffbet will now gain access to Manisol brands Scandibet and TurboVegas, which the operator said it expects to increase casino sales by more than 50%, as well as pay and play brand In & Out Casino.

Henrik Svensson, Spiffbet CEO, said: “With this acquisition, Spiffbet reaches a critical mass and becomes a player to be reckoned with in the gaming industry. This also opens up opportunities for major acquisitions and structural deals in the future.

“The ambition is to get the maximum return on the advantage of being listed on the stock exchange, our proven ability to carry out acquisitions and the large cost advantages that can be achieved thanks to the higher turnover.

“This also strengthens the synergy effects between gaming production and our casino operations. We will continue to act as a locomotive for acquisitions and a catalyst for structural business,” he added.

Johan Styren, the majority owner of Manisol and former LeoVegas CEO, will serve as a strategic advisor on Spiffbet’s casino operations moving forwards.

Styren said: “It is very fun to find a port for Manisol at Spiffbet. Both companies have a good organisation with different qualities that I think will work well together. The companies really complement each other and can utilise each other’s strengths.

“It will be very fun to follow the business both as a major shareholder and strategic advisor in the future. And we can now significantly increase the pace of the investments we have already begun with establishment in additional markets, both in and outside Europe,” he added.

Manisol Gaming’s casino brands were previously powered by Bethard Group via its MGA licence.