GAN inks €149m Coolbet acquisition as Q3 revenue rockets 86%
London-based supplier highlights turnkey integration and “significant revenue synergies” of deal
GAN has sealed a €149m (£133.6m) cash-plus-stock deal to acquire Malta-licensed Coolbet parent company Vincent Group.
The purchase, which is subject to regulatory review and approval, is expected to complete in Q1 2021.
GAN expects the acquisition to be “immediately accretive” to business as 175 Coolbet employees and more than 84,000 active customers transfer over.
In addition, Coolbet’s proprietary sports betting technology will be integrated into GAN’s existing turnkey platform, with the eventual aim of launching in the US online gambling market in H2 2021.
“Coolbet is more than just the best sportsbook platform we vetted during our process,” GAN CEO Dermot Smurfit said.
“Coolbet has a well-established global business, a strong and loyal B2C customer base, and a diversified revenue stream.
“They are expert marketers and have grown their top-line over 46% in highly competitive and established markets in Northern Europe, Latin American and Canada.
“We will not only achieve scale and diversity across our revenue streams through this combination, but we also see a strong opportunity to leverage Coolbet’s expertise and relationships in other markets where our industry-leading B2B SaaS platform can be deployed,” Smurfit added.
Coolbet took a strategic approach towards the US market when PASPA was repealed in 2018 by entering Latam and Canada. The decision was a clever one imo, as they showed strong success in the neighbouring markets with less competition, while attracting interest from US players.
— Bullbullbull (@Bullx33) November 16, 2020
Coolbet operates on proprietary tech developed by NordicBet founder Jan Svendsen. The firm, which is headquartered in the Estonian capital, Tallinn, owns gambling licences in Estonia, Malta and Sweden.
Coolbet boasts customers in Norway, Sweden, Finland, Iceland, Estonia, Chile and has recently expanded into Canada and Peru.
Coolbet generated €18.6m (£16.6m) in revenue for the first nine months of 2020, with EBITDA of €500k. It has previously raised additional funds totalling €35m through private share placements and operates with no debt.
Elsewhere, GAN reported an 86% year-on-year rise in Q3 2020 revenue to $10.3m (£7.7m), buoyed in part by significant increases in its real-money internet gaming and simulated gaming operations.
Real-money internet gaming revenue jumped 87% year-on-year to $7.7m, while simulated gaming revenue increased by 85% to $2.6m.
Company gross profits rose by 166% to $6.4m.