Betsson Acquires Peru’s Inkabet
After a profitable and record-breaking quarter, the Swedish gaming operator Betsson has acquired Inkabet, a B2C online casino and sportsbook based in Peru and active throughout South America. Betsson reports it expects to close the deal within 30 days of signing, with certain conditions present which will determine the final payout to Inkabet.
Swedish gaming operator Betsson acquires Peru’s Inkabet in strategic Latin American expansion deal. ?Isabela Kronemberger/Unsplash
A Look at the Numbers: What is Betsson paying?
The deal, which takes place through Betsson’s subsidiary SQ Nordic Limited, is contingent on several performance markers which Inkabet may or may not reach through the coming year. The initial deal is for $25 million, but additional payments will be awarded if Inkabet reaches its targets.
Targets include an agreed-upon EBIT — earnings before interest and tax — in the next six months. If this target is reached, Inkabet owners will be eligible for an additional $4.7 million, as well as a deferred $5.87 million, to be paid in 2022 and 2023. Overall, it is clearly a deal that Betsson’s team saw worthy of a substantial investment.
Betsson Sees Strategic Growth in LATAM
This investment makes sense given Betsson’s recent, public stance on its dealings in Latin America. After Betsson recorded record-breaking profits of SEK 337.9 million in Q2 2021, it attributed much of its growth and success to deals within the Latin American market.
Specifically, Betsson’s leadership credited growth opportunities in sports betting and online casino gaming in LATAM. These factors made the Latin American territory its fastest growing market in Q2. Therefore Inkabet is a clear ally for their strategic development in western South America.
Betsson chief executive Pontus Lindwall stated it simply in the company’s recent press release:
“Through this transaction, Betsson continues to build market share in the LatAm region, following the previous acquisitions of JDP Tech Ltd, Suaposta and Colbet. This strengthens our position in a strategically important region where we have performed well and have big ambitions for the future.”
Aside from Inkabet, Betsson has made strides in increasing visibility throughout Latin America, not only through acquisitions but also through sponsorships. One recent such deal was as a regional sponsor of CONMEBOL Copa America, with corresponding marketing campaigns to stand out in the territory.
Inkabet: A Good Bet for Betsson
Inkabet launched in Peru in 2012 but serves the western region of South America, recently reporting $25.5 million in revenue from June 2020 to June 2021. This is impressive growth considering the ways in which many economies and industries have faltered since March 2020.
Inkabet has focused on sports betting customers, offering 24/7 customer service. But the company also has increased its online casino gaming portfolio, including deals with CT Gaming Interactive and others. They now offer slot games and other online casino fare like table games.
