Entain completes BetCity acquisition with initial €300m payment
London-listed firm eyeing cost synergies across tech and content by 2026 as it nets Netherlands entry
Entain has completed the potential €850m acquisition of Dutch operator BetCity in a move that will fast track its entry into the Netherlands.
Announced in June 2022, the multi-million-euro deal has now been completed for the market leader, which holds a 20% share in the Netherlands.
An initial €300m has been paid by Entain upon completion of the deal and a balancing payment will be paid once BetCity’s 2022 financial performance is confirmed.
The initial payment was funded by Entain’s refinancing agreement which saw the group secure a $1bn loan in October 2022.
Additionally, a further contingent payment will be made in early 2024 based on 10x BetCity’s EBITDA for 2023.
A final payment of €50m will be made on delivery of synergies and successful migration to the Entain platform.
Entain said the total consideration payable on the firm’s current expectations is €450m.
However, this figure could rise to as much as €850m based on BetCity’s future performance.
The FTSE 100 firm noted the acquisition is expected to result in approximately €28m of cost synergies, predominantly from technology, content and royalty benefits, by the end of 2026.
Jette Nygaard-Andersen, Entain CEO, said: “We are pleased to have completed the acquisition of BetCity. The combination of BetCity’s local expertise and strong brand, alongside Entain’s global scale and market-leading platform, provides customers with an enriched and broader offering of engaging products, fresh content and new experiences.
“This transaction further underpins our growth strategy of operating in, and expanding further into, attractive regulated markets. We look forward to working with Melvin and the BetCity team as we execute on the significant opportunities in the Dutch market,” she added.
Entain CFO Rob Wood commented: “We’re welcoming the BetCity.nl team in the Netherlands to Entain today and strengthening our presence in the region with one of the leading licenced operators in sports betting and gaming.
“BetCity are a fantastic team with marketing excellence, a customer-centric approach and a strong brand presence in the local market. M&A is a key element in our growth strategy and I’m delighted to welcome Melvin and his team to the Entain Group.”