The online and mobile sports gaming company Gaming Nation which currently operates mainly in Canada and the US announced that it is to acquire the UK market leader in the stadium betting services sector BD Sport Group. The two companies have entered into a definitive agreement through the Gaming Nation Acquisition subsidiary.
As a result of the deal, Gaming Nation will get the full suite of offerings of the British company, including all the assets of BD Sport, BD Stadia and BD Deportes. The acquisition is expected to be finalised in March 2017. It will need the approval of the competent regulatory authorities in both Canada and the UK, and it is to be subjected to certain general closing conditions.
The Chief Executive Officer of Gaming Nation Scott Secord, who is also President of the company, commented on the deal, shared the entire managerial team of the company and the Board of Directors’ belief that the takeover would turn out to be extremely beneficial for the company and its shareholders. He defined the EBITDA generated by BD Sport Group as “attractive”, and explained it was a unique chance for Gaming Nation to work with its existing infrastructure.
The acquisition price consists of a total cash payment amounting to £8.8 million, and additional provisions that could boost the prize to as much as £11 million. Gaming Nation is expected to pay half of the purchase price when the deal is finalised. Further 31.25% of the total prize will be paid 12 month after the acquisition’s closure, and the remaining 18.75% are to be paid 24 months following the closing.
The revenue generated by BD Sports operations over the last 12 months amounts to about £4.3 million, while its EBITDA during the period reached £1.3 million.
The two co-founders and directors of BD Sports – Tony Warwick and John Lee – confirmed of the acquisition and revealed that the company was truly excited about the variety of growth opportunities existing for the collaboration with its key business and Gaming Nation. According to them, the merger would result in infrastructure improvements and better financial support for the business of the BD Sports brand in regulated European markets.
Established in 2007, BD Sport Group has been focused on providing with stadium betting services primarily in the football market in the UK. Currently, the company holds operations at 31 stadiums across the country.
- Author
Daniel Williams
