A prominent online gaming company, Betsson, is expanding its presence in South America. Utilizing its subsidiary, SW Nordic, Betsson will purchase Inkabet, a well-known internet wagering platform in the area. This calculated acquisition bolsters Betsson’s position in the flourishing South American market, especially in Latin America, a crucial region for the company’s expansion plan.
The agreement includes an initial payment of $25 million with the possibility of an extra $4 million contingent upon Inkabet reaching certain performance benchmarks. This incentive will be disbursed within six months of the transaction’s finalization. Furthermore, there’s a postponed payment of $5 million, with $3 million due by late 2022 and the remaining $2 million due by the end of 2023, provided there are no unresolved disputes.
Inkabet, recognized for its sports wagering and internet casino offerings, maintains a significant presence in the western portion of South America. To fund this acquisition, Betsson is utilizing its revolving line of credit, guaranteeing it retains financial adaptability for comparable strategic endeavors in the years to come.
Since its inception in 2012, Inkabet has witnessed remarkable expansion. In the twelve months preceding June 2021, the firm generated $25.2 million in earnings and $8.8 million in operating profit. Even more notably, Inkabet attained a remarkable 146% year-over-year earnings surge, demonstrating its robust market standing and potential for growth.
The head honcho at Betssons, Pontus Lindwall, is brimming with enthusiasm regarding their venture into the Latin American market. He views the purchase of Strive Platform as a significant strategic play, capitalizing on their prior triumphs with entities such as JDP Tech, Suaposta, and Colbet. It’s evident they are fully committed to the region and exude assurance in their ability to become the market leader there.
