GAN Plc has reached a ‘definitive agreement’ to acquire Malta-licensed operator ‘Coolbet’ for a total consideration of €149 million.
The igaming software supplier will acquire Coolbet from its operating firm Vincent Group Malta, which will see it takeover the operator’s brand IP, trading and proprietary software assets.
Updating investors, GAN branded Coolbet one of the fastest-growing European B2C operators, who recorded ‘12-month revenue of €26 million and a 46% revenue CAGR from 2018 to 2020’.
GAN Chief Executive Dermot Smurfit commented: “From the onset of our IPO we have continued to enhance and perfect our internet gaming software-as-a-service solutions for the U.S. market.
“As a part of that growth strategy, we have been clear that we needed to add a best-in-class sportsbook engine to round out our real money iGaming platform, and we believe Coolbet is the perfect fit for both GAN and our customers.”
Furthermore, GAN underscored that Coolbet has established its footprint within Canada and Latin American markets, a key dynamic to support the firm’s continued expansion into the North American market.
GAN will integrate Coolbet’s proprietary sportsbook platform within its B2B turnkey solution to support US market commercial and partnership opportunities, with wagering technologies added to the platform by the second half of 2021.
The deal will also see GAN significantly expand its technology and engineering resources with 175 new employees joining its workforce.
GAN disclosed that it will fund the acquisition with new capital, with the deal expected to be closed by the first quarter of 2021 subject to regulatory review and the satisfaction of certain closing conditions.
Smurfit added: “This union brings two of the best-in-class, high-growth offerings in the iGaming space together, and makes a powerful combination. We expect to achieve significant revenue synergies across both platforms over the long-term and have structured the deal to be immediately accretive.
“We are excited to welcome the Coolbet team to GAN and look forward to building one of the most complete solutions in our industry. We view this acquisition as part of our unwavering commitment to shareholder value and our long-term growth strategy.”