May 1, 2014
Digital Media and Media
Betit Group enter into a joint venture with GVC Holdings
Rapidly growing iGaming group in the Scandinavian iGaming market
Betit Group (Betit) is a Malta-based company that develops and provides online casino and other gaming services. They commenced operations in December 2013 and have already achieved average daily revenues in excess of €40k with around 1,600 players per day.
Betit operates the brands Thrills.com and Superlenny.com and since it started trading has grown rapidly to a team of 60 employees. With a clear focus on product usability, design and service, both Thrills.com and Superlenny.com have seen unparalleled growth in the Nordic markets.
Joint venture between Betit Group and GVC Holdings provides a strategic entry point into the dynamic and expanding Scandinavian gaming markets
GVC Holdings, the UK-based multinational sports betting and gaming group is entering into a joint venture agreement with Betit.
GVC’s upfront commitment is an initial €3.5 million out of free cash flow for a 15% share in the joint venture and is dependent on the granting of approval by the Lotteries & Gaming Association of Malta. GVC will be taking a seat on the board of Betit.
The joint venture agreement provides GVC with a strategic entry point into the dynamic and expanding Scandinavian gaming markets in which, to date, GVC and its key brand Sportingbet have had no significant presence.
Commenting on the strategic investment, Kenneth Alexander, Chief Executive of GVC Holdings, said: “GVC’s commitment to expansion without undermining the current level of dividend is represented in this investment. The lucrative Scandinavian market has been on our radar for some time and we are delighted to be working with the entrepreneurial team at Betit who have a proven track record in the Scandinavian e-gaming markets, and have already grown the business from a standing-start five months ago to generating revenues of over €40k per day now. By entering into this joint venture, we believe that GVC can diversify its revenue streams and significantly enhance the future dividend prospects and valuation of the Group for a minimal initial outlay and is similar to what has been achieved through GVC’s Betboo acquisition in Latin America.”
GCA Altium acted as sole financial advisor to Betit Group.