|BETonSPORTS plc, a leading US and Asian facing online sportsbook, casino and poker business, announces the acquisition of several online sportsbooks and casinos trading principally under the names MVPSportsbook, Player Super Book and V-Wager.|
The business is mainly conducted through the internet and will be integrated into the existing BETonSPORTS infrastructure in Costa Rica and Antigua. The acquisition also brings additional executive management and marketing expertise and enhanced channels for the US market.
The purchase consideration to be paid for the business and the value attributable to the assets comprises an initial consideration of US$20.2 million, to be satisfied on completion of the acquisition as to US$15.2 million in cash and the issue of 2,178,744 ordinary shares of 1p each in the capital of the Company (the “Consideration Shares”) as well as deferred consideration of up to US$16.8 million to be paid in cash depending on the profitability of the business for each of the 4 years coinciding with the Company’s financial years ending on 4 February 2007 and thereafter. The maximum total purchase consideration for the business is US$37 million.
The historic profit before tax to 30th September 2005 (unaudited) of the businesses being acquired was US$3.3 million.
David Carruthers, CEO of BETonSPORTS plc, said 'This represents an exceptional opportunity to bring well respected brand names into our family and to integrate with our existing businesses seamlessly and using our existing infrastructure. At the same time, the acquisition extends our cross selling opportunities and further strengthens our management team with US facing sports betting expertise. This transaction demonstrates the Company's commitment to consolidation within the Industry and shows our continued confidence in the growth opportunities of the US market.
We also confirm that, as widely reported the NFL sports betting margins in the US have been adversely affected recently as a result of a large number of favourites winning. However, the Company expects that these margins will follow the trend of earlier years and return to normal levels during the balance of the financial year, in which case the results will be in line with expectations. However if margins do not follow the trend of previous years then the outcome will be below those expectations. Importantly gross win % margins in all other sports are ahead of last year and the key business performance indicators of new customer acquisitions, cash receipts and active customers remain encouraging.'
Application has been made for the Consideration Shares to be admitted to trading on AIM and it is expected that admission will become effective on 4 January 2006.
Following a review of Board Responsibilities, Craig Lapsley will step down from the Board from today. He will continue to be employed by the Company and will perform an integral role as Company Secretary. Richard Creed has been appointed interim Finance Director while the search for a full time Finance Director is being undertaken.
Notes for Editors:
Established in 1995, BETonSPORTS is one of the largest licensed and publicly-traded online wagering companies in the world. Operated by BETonSPORTS plc (LSE: BSS.L - News), BETonSPORTS is licensed in Europe and the Caribbean. The Group has offices in the UK, Antigua, Costa Rica, Malaysia, The Dominican Republic, Guatemala and Mexico employing more than two thousand people. Gaming services include the world's most dynamic sportsbook www.betonsports.com and a casino www.boscasino.com and poker room at www.bospoker.com Millennium Sports, established in 1999, was BETonSPORTS plc’s first major acquisition in 2004 and facilitates recreational sports gaming at www.betmill.com along with a casino and poker room at www.millpoker.com. In May 2005 BETonSPORTS acquired Easy Bets an Asian facing online Sportsbook and Casino www.easybets.com more information on the BETonSPORTS group can be found at www.bosplc.com
Chief Executive, BETonSPORTS plc 001 506 234 4515