Latin American Acquisition

RNS Number : 9633U

Gaming VC Holdings S.A.

01 July 2009

 



1 July 2009

Gaming VC Holdings S.A.

('Gaming VC' or 'the Company' or 'the Group')

Acquisition of leading Latin American online gaming business

Gaming VC Holdings S.A. (AIM: GVC), a leading European online gaming company, is pleased to announce that it has acquired the business and assets of betboo.com, owned by Intera NV ('Intera'), for an initial consideration of US$4 million in cash plus a three-year earn out.

Betboo was established in 2005 to provide Bingo, Sportsbook, Casino and Poker access to South American customers. Intera was incorporated and is regulated under the laws of the Netherlands Antilles and has never taken wagers from US residents. 

Betboo has over 3,000 active monthly customers and, for the 12 months to 30 June 2009, generated unaudited revenues of $4.4 million and has achieved break-even at the profit level. The business has no employees, instead having service contracts with third party companies supplying Customer Relationship Management and IT support. The business has its own software for Bingo and Sportsbook and uses third-party software for the Poker and Casino networks.

The senior management team, comprised of the three people who were also the majority owners of the business, are to remain with betboo post the acquisition. 

The total consideration, which is capped at US$30 million and is payable in cash, will be calculated by reference to five times the audited profits after tax for the 12 month period up to the third anniversary of the acquisition less the initial consideration and any interim payments. Interim payments will be paid shortly after the first and second anniversaries of the acquisition equating to one times audited profits for the preceding 12 month period. 

Commenting on the acquisition, Kenny Alexander, Chief Executive of Gaming VC, said: 'This acquisition complements our strategy of continuing to diversify outside of Germany. The Board believes that South America represents an exciting market opportunity. With a population of approximately 285 million, many of which are passionate about sports, and increasing broadband penetration, we are confident of significantly increasing betboo's presence in this new territory for Gaming VC.'

For further information:

Gaming VC Holdings S.A.
Kenneth Alexander, Chief Executive	Tel: [phone]
Richard Cooper, Group Finance Director	www.gamingvc.com

Arbuthnot Securities Limited	Tel: [phone]
James Steel / Katie Shelton, Corporate Finance	www.arbuthnotsecurities.co.uk

Media enquiries:

Abchurch
Chris Lane / Stephanie Cuthbert / Nick Probert	Tel: [phone]
[e-mail]	www.abchurch-group.com

Notes to editors

Gaming VC is a leading European online gaming company. The Group is headquartered in Luxembourg and is licensed in Malta, Italy and the Netherlands Antilles.  

Gaming VC's management team has a wealth of experience in the gaming industry and has a significant track record in successfully identifying and penetrating new markets. The Group is focused on delivering an innovative product offering and is dedicated to providing sophisticated Customer Relationship Management (CRM) to ensure high levels of customer satisfaction.  

Gaming VC uses Internet marketing and affiliate networks for customer acquisition and customer retention purposes.

In December 2004, Gaming VC's shares were admitted to the AIM market of the London Stock Exchange. Gaming VC has not and has never transacted wagering activity by players in the US.  

Further information on the Company is available at www.gamingvc.com.  

 

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