Sports betting and gaming group GVC Holdings has agreed to initially acquire 51 per cent of the equity capital of Georgian online gaming operator Crystalbet.
The deal has so far cost GVC €41.3m, with a commitment to acquire the remaining 49 per cent in 2021 subject to certain buyer protections, at a valuation of seven times the 2020 clean EBITDA, or €150m, whichever is lower.
The operational management team at Crystalbet, led by CEO Koba Giglemiani, will all remain in place.
Giglemiani said: "When we were looking for a strategic acquirer to take Crystalbet to the next level, GVC was very much our first choice. GVC's experience and track record in many different geographic markets, together with its technology and marketing skills, are key attractions for Crystalbet."
GVC CEO Kenneth Alexander said: "Through access to GVC's content, technology and digital marketing skills, we believe Crystalbet can become a clear leader in the regulated Georgian market." Crystalbet was launched in 2011 and holds licences to offer online gaming products, including sports betting, casino games, poker and peer-to-peer games throughout the fully regulated market of Georgia.
For the financial year ended 31 December 2017, Crystalbet revenues were GEL102.9m (€34m), with EBITDA of GEL36.5m (€12.0m) and a profit after tax of GEL30.8m (€10.2m).
