SBC News Voice of the Sports Betting Industry
European sports betting operator Betsson has settled its payment and earn out dispute with the former owners of Nordic Gaming Group (NGG), the online betting operator it acquired in 2012.
NGG officials had claimed that Betsson had breached the earn out conditions of the 2012 deal, disputing an additional purchase reward of €20 million subject to the company’s future performance under new management.
Both parties have agreed to new deal terms, which will see Betsson pay NGG founders €15.5 million for its final earn-out. After the completion of the final earn-out Betsson AB will have no additional deal requirements or further earn out interests.
The final settlement will see Betsson update its trading report, as the operator will have to adjust its cash flow with a negative SEK 147.1 million impact. Corporate profits will see a positive profit impact of around SEK 40 million for the its upcoming Q4 2014 results
Betsson’s dividend policy states that 75% of earnings is transferred each year to shareholders through an automatic redemption process. Betsson added that the positive profit effect will not be included in calculation of net distributions to shareholders.
