Betsson is aggressively expanding its sports wagering operations and has recently made a significant move to achieve this goal. The company has secured a dominant 80% ownership in KickerTech, a provider of sports betting software solutions. This transaction, valued at €14 million (equivalent to $14 million USD), grants Betsson a majority stake through one of its subsidiary entities.
The acquisition cost will be disbursed in three separate payments. Betsson will initially pay €6 million in cash upfront, followed by an additional €4 million in cash after a six-month period. The remaining €4 million will be paid after one year, either in cash or Betsson company stock.
Betsson’s Chief Executive Officer, Pontus Lindwall, views this as a crucial step in solidifying their presence within the competitive global sports betting arena. He emphasized that this acquisition will not only bolster their already robust business-to-business (B2B) sports betting segment but also enhance their leading business-to-consumer (B2C) brand.
KickerTech, employing a team of 50 individuals based in Lithuania, specializes in developing odds algorithms, trading platforms, and other essential sports betting functionalities. They have demonstrated a successful history, generating €2.6 million in revenue and €1.3 million in profit before accounting for interest and taxes in the fiscal year ending in September 2022.
Lindwall underscored the value proposition of KickerTech, stating that they are acquiring an established enterprise with a proven track record of expanding its clientele, betting volume, and revenue streams. He believes this strategic acquisition will provide them with improved sports betting capabilities, novel technological assets, and a new group of B2B customers.
We were excited to bring a new group and their athletes into the Betsson circle! This calculated action follows closely after Betsson’s unprecedented fiscal achievements in the third quarter.