Bet on Sports buys into Asia
29 June 2006Bet on Sports is attempting to purchase Asian online sportsbooks Hooball and 777ball. The multi million dollar deal to purchase the companies will dramatically increase Bet on Sports’s Asia presence in the online gaming industry.
According to the conditions of the deal, BoS will have to make an initial payment of US $22 million. Following this an extra cash acquisition of US $10 million will issue almost four million regular shared. There are several other conditions related to the agreement affecting the final purchase price according to the financial performance of company upon completion of the deal. The maximum purchase price will reach almost US $38 million.
The sportsbooks customer base includes mainly football and basketball. These clients are located mostly in Guangdong and Zheziang provinces. These include the cities of Beijing and Shanghai.
Malaysia contains a current system of Easy Bets infrastructure. This will organize the two new acquisitions until they are completely integrated into the Easy Bet operating infrastructure.
The Malaysian company boasts enhanced management control, cost savings, improved processing channels and additional key personnel skills. They promise to deliver product diversification across all Asian brands.
According to company spokesman, the acquisitions took place in profit. This was indicated on the December 2005 tax forms, which revealed a profit of over three million dollars.
For the fifteen months ending March this year, the company say almost thirty thousand new players sign up. Almost fifty percent of these were real money sign ups, including deposits. Furthermore, active clients between January 05 and March 06 remained at a stable six and a half thousand per month.
According to Managing Director of Easy Bets, Tim Lambe, they agreed to increase the earn out time from three years to five years. This is due to the integration of the new purchase into the existing Easy bets operations.
Cost base adjustments have also been made as well as percentage entitlements to profits over the minimum level.
David Carruthers BoS CEOstated that the acquisition was not simply about enhancing the company’s earnings.
Indeed, they view China as a “must-be-in market” and with Hooball and 777ball consolidating our Easy Bets presence. The acquisition has greatly increased their advantage.
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