The betting exchange has agreed to acquire 100% of the Leip Group, in a landmark deal to establish itself as a leading Continental European retail betting player.
The Leip Group accepts bets from over 80 retail shops and operates its own high street outlets under the “Wettenleip” brand. In 2004 it reported a profit before tax of EUR1 million on bets placed of EUR51.7 million and revenue of EUR8.1 million.
The total purchase price consideration of EUR10.0 million and 700,000 Betbull ordinary shares is conditional on the approval of the betting exchange\’s shareholders at the extraordinary meeting scheduled for September 29.
“With the acquisition of the Leip Group, betbull will have left the start-up phase behind. We have scanned several opportunities in the European gaming sector and decided for the acquisition of the Leip Group as our preferred choice – a profitable and cash generative business in a European key market with huge growth potential. Our vision is to grow the business organically and through acquisitions building upon the lead in the rapidly expanding, yet still immature retail betting sector,” said Gunter Schmid, CEO of Betbull.
“This is a fantastic opportunity for betbull to be a part of the retail business in Germany in the World Cup year 2006. The German retail sector is ready for the changes that we can bring about in terms of opportunities, speed and convenience. With my background in retail bookmaking I am confident that we can create substantial value there. This acquisition is only the start of our Continental European retail growth strategy,” added Simon Bold, COO of Betbull.
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