August 4, 2021
Digital Media and Media
GCA Altium advises Hero Gaming on the sale of its Swedish brands to Paf
GCA Altium acted as M&A advisor to Hero Gaming, the Swedish gaming company best known for its brands such as Speedyspel and SpeedyCasino, who have sold their Swedish Speedy brands and revenues through a structured sale to the operator Paf.
Hero Gaming was founded in 2013 by Georg Westin and quickly established itself as a leader in creating games with high entertainment value by combining the excitement of money games with mechanics that are often found in other games without betting elements. The company has primarily made itself known through its brands Casino Heroes, Speedycasino and Boom Casino. Hero Gaming has grown significantly in recent years with revenues increasing by over 500 percent and the firm now has about 140 employees. Of these, 50 work with technology and product development from the company’s Experience Centre in Malmo, Sweden, and about 90 people work with the gaming business from the head office in Malta.
The agreement with Paf, which is owned by the Åland Provincial Government, means that Hero Gaming is selling the two subsidiaries Speedy Ltd and Speedy Originals Ltd, which each have a Swedish licence, as well as the brands Speedycasino, Speedybet and Speedyspel. The acquisition will support Paf’s long-term strategy to grow in regulated markets such as Sweden.
Tomas Bäckman, CEO of Hero Gaming, commented: “Hero Gaming was founded in 2013 and in the last couple of years we have seen fantastic growth of the business and felt we needed to come up with a strategy to pay back some dividends to our shareholders. The founder Georg Westin, together with our main shareholders, were not interested in selling off the whole group which is why this part-exit is a win-win strategy for everyone. We have been working on structuring this sale for the last 1.5 years with setting up the companies, applying for new Swedish licences and moving the brands for sale into the companies that are now being sold. If looking at Q1 2021, Sweden accounted for approximately 15% of our total revenues. Therefore this is not to be seen as an exit from our side, but rather the opposite – we’re optimising our company structure and strategy for continued growth while at the same time paying back some well-deserved dividend to our patient shareholders.”
Christer Fahlstedt, CEO of Paf, added: “The Speedy brands were perfect for Paf’s investment in the Swedish market. We have a long-term strategy and strong faith in the future in the regulated Swedish gaming market. With the acquisition we will move to a top six position in the Swedish market, which is completely in line with where we want to be. Our goal is to remain a strong player in Sweden for many years to come. Hero Gaming has done a good job with the gaming sites and they will be a good complement for us in the future.”