» Unibet Group to Acquire Australian Betchoice Corporation
Unibet Group to Acquire Australian Betchoice Corporation
Thursday 9 February, 2012 18:20
The Unibet Group, a renowned online betting company, has announced that it
has acquired 100 percent of Betchoice Corporation Pty Ltd., an independent
online bookmaker in Australia.
The purchase of Betchoice - which runs a number of race books and sports
books in Australia at www.Betchoice.com - will give Unibet the opportunity to
provide other gaming products and services in Australia, provided market
conditions are favorable.
The Unibet acquisition of Betchoice will give it access to the
lucrative Australian online gaming market, which is growing at a rapid pace. It
will also give Unibet a platform for future investment, as well as put it in a
position to grab a share of the live betting market in Australia in the future,
and provide it with a capacity for horse racing, which can be further expanded.
Details of the Unibet Betchoice Deal
Unibet will acquire Betchoice at an initial price of GBP 13.6 million or AU$
20 million on a debt-free and cash-free basis, which is to be paid in cash upon
In addition, Mark Morrissey, the founder chairman of Betchoice and holder of
a 38 percent share in the company, will get an earn-out on the basis of 5.5x
2014 EBITDA minus the initial price for acquisition. Morrissey will continue
with the company after acquisition.
Other shareholders of the company will also receive an aggregate of AU$ 2.4
million if the 2014 EBITDA is more than AU$ 4.4 million.
The Unibet Betchoice acquisition will only go through provided the Northern
Territory Racing Commission approves it and is expected to go through before the
second quarter of the fiscal year 2012. Unibet will also rebrand Betchoice as
Unibet shortly after the acquisition.
Unibet's Portfolio in Australia
Unibet also plans to improve its product portfolio of Australia and
strengthen its brand in Australia over the next two years.
Betchoice's products and financial performance are expected to improve once
the risk management techniques and wide range of sports products of the B2B
Sportsbook division, also known as Kambi, belonging to Unibet are applied to it
after acquisition. In return, Kambi will have the advantages of integrating the
racing product of Betchoice into its product portfolio.
Unibet, however, does not expect a major financial impact on its 2012 profits
because of its acquisition of Betchoice as it has already implemented strategies
for growth in future.
The 35 Australians employed by Betchoice at present will become part of
Unibet post acquisition. Betchoice has a license issued by the Northern