The AIM-listed bookmaker agreed to acquire the Costa Rica-based group, which includes MVP Sportsbook, Players Super Book and V-Wager, for a maximum consideration of $37m.
The purchase consideration comprises an initial consideration of $15.2 million in cash and the issue of 2,178,744 ordinary shares of 1p each in the capital of BetonSports as well as deferred consideration of up to $16.8 million to be paid in cash depending on the profitability of the business for each of the next 4 years.
The V.O. Group, which reported a profit before tax to September 30 of $3.3m, will be integrated into the existing BetonSports infrastructure in Costa Rica and Antigua.
“This represents an exceptional opportunity to bring well respected brand names into our family and to integrate with our existing businesses seamlessly and using our existing infrastructure. At the same time, the acquisition extends our cross selling opportunities and further strengthens our management team with US facing sports betting expertise. This transaction demonstrates the Company\’s commitment to consolidation within the Industry and shows our continued confidence in the growth opportunities of the US market,” commented David Carruthers, CEO of BetonSports.
BetonSports also confirmed that the NFL sports betting margins in the US have been adversely affected recently as a result of a large number of favourites winning. The company expects that these margins will follow the trend of earlier years and return to normal levels during the balance of the financial year, in which case the results will be in line with expectations. However if margins do not follow the trend of previous years then the outcome will be below those expectations.
Gross win percentage margins in all other sports are ahead of last year and the key business performance indicators of new customer acquisitions, cash receipts and active customers remain encouraging.
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