Alderney-based Internet sports betting company Sportingbet has acquired SportsBook, a competing Internet bookmaker that specializes in American sports, for £35.9 million.
Through the deal, Sportingbet will gain another 347,650 customers, of which 70,000 have bet with SportsBook during the last three months.
Payment for the company will be through a mixture of stock and cash. Sportingbet will make an initial payment of £35.9 million in cash, convertible and non-convertible loan notes and shares. This comprises a payment of £27.1 million at completion and £8.8 million when the aggregate net profits for four quarters amount to £4.2 million, according to Sportingbet.
"I have long admired SportsBook and regard it as one of the most successful examples of Internet bookmaking," Sportingbet Managing Director Mark Blandford said. "In acquiring this business, Sportingbet will be able to achieve substantial synergy benefits. I believe this to be an excellent deal for Sportingbet shareholders. Following this deal we are clearly a leading global bookmaker as measured by customers and bets placed. Accordingly, we are well placed to capitalize on market trends and opportunities."
SportsBook, a World Gaming plc licensee, operates three main websites--sportsBook.com, wallstreet.com and playersonly.com.
The purchase of SportsBook is only the latest of several acquisitions by Sportingbet, an AIM-listed firm. Over the past two years the company has acquired several of its competitors, including the Firststake plc of Great Britain, Australia's Number One Betting Shop, and Costa Rican-based Betmaker.