BETonSPORTS plc, one of the world’s largest US and Asia-facing online gaming companies, announces the acquisition of China facing sportsbooks Hooball and 777ball. The addition of these brands effectively doubles BETonSPORTS’ Asian market presence.
100 per cent Internet based with a principal customer base in Guangdong and Zheziang provinces, Beijing and Shanghai, sportsbook activity largely centres on football and basketball. The business will be fully integrated into the existing Easy Bets operating structure in Malaysia to deliver enhanced management control, cost savings, improved processing channels, additional key personnel skills and product diversification across all BETonSPORTS plc’s Asian brands.
The initial purchase consideration and the value attributable to the assets, of US$22 million, will be satisfied on completion of the acquisition as to US$10 million in cash and the issue of 3,859,089 ordinary shares of 1p each in the capital of the Company (the “Consideration Shares”*). Deferred consideration of up to US$16 million has been agreed, to be paid in cash depending on the profitability of the business in the year after completion. The maximum total purchase consideration for the business is US$38 million.
The historic profit before tax to 31 December 2005 (unaudited) of the business being acquired was US$3.6 million. The current rate of gross handle is approximately $120 million (RMB1,000 million approx) per annum, in respect of two sportsbook brands, but including exchange betting of $8 million per annum; additionally, there is a new casino, which commenced operations in March 2006, with an initial gross handle of $5 million in that month.
During the 15 months ending 31 March 2006 the business had 28,274 sign ups, 40% of which were real money sign ups with deposits. Active clients (being unique customers wagering in a month) between January 2005 and March 2006 remained relatively …