Intertain to take over Vera&John

Intertain to take over Vera&John

Thursday, October 9, 2014 Totally Gaming

Canada-based Intertain Group has struck a deal to acquire fellow online gaming operator Vera&John in a deal worth at least €81m ($103m).

Intertain said that the deal with Malta-based Dumarca Holdings, the parent company of Vera&John, is initially worth €44.5m in cash and €36.5m in common shares.

Further annual payments of no more than €8.1m may be due if Vera&John generates earnings before interest, tax, depreciation and amortisation over certain thresholds in 2015 and 2016.

The deal, which still requires regulatory approval and the completion of due diligence, is expected to be finalised in December.

Following the news, Intertain Group’s share price had increased by 8.25% to C$12.60 by 2pm Eastern Time on the Toronto Stock Exchange.

Vera&John currently operates in 11 countries globally under three brands – Vera&John, Vera&Juan and Vera&John Social. The operator generates about 75% of its sales from the Nordic region.

“Vera&John provides immediate accretion and meaningful operating cash flow to our business and gives us access to the growing Nordic markets,” Intertain chief executive John Kennedy FitzGerald said.

“Furthermore, Vera&John has developed and owns a fully-integrated, proprietary software offering, giving us future flexibility with respect to our business. Vera&John also has a mobile platform, including a leading mobile casino, with 35% of their expected 2014 sales being generated through this growing medium.”

Dumarca director Dan Anderson added: “We are very excited about this transaction and feel both parties bring excellent value going forward.

“We reviewed alternatives to this deal and felt Intertain was the best partner, given their aligned interest and exciting growth prospects.

“We are committed to this partnership as shown in our material ownership in Intertain going forward.”

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