In a double quandary that may have delighted two of the country's...
Entain plc, the global sports betting, gaming and interactive entertainment operator (“Entain” or the “Group”), announces today that it has acquired Deis Ltd (Avid Gaming) for CAD300 million (approximately £174m/$235m/€206m) from Middlebrook Investments Limited.
Avid Gaming owns Sports Interaction, Canada’s leading online sports betting brand. It is headquartered in Jersey (Channel Islands), with offices in the Mohawk Territory of Kahnawà:ke and Ireland.
Avid Gaming exclusively licenses the Sports Interaction trademark and provides proprietary online betting and gaming products and services to the Mohawk Council of Kahnawà:ke (“MCK”) and the Mohawk Online socioeconomic initiative. Mohawk Online, which is wholly owned by the MCK, operates Sports Interaction in Canada.
Canada is a highly attractive and fast-growing sports betting and gaming market. Together with Entain’s application for an Ontario licence, this acquisition provides an excellent opportunity to drive further growth, in line with the Group’s growth and sustainability strategy.
Sports Interaction’s sports-led offering is highly complementary to Entain’s existing Canadian business, comprising the Party and bwin brands. The combination will bring Entain’s global scale, expertise and market-leading platform together with Sports Interaction’s local expertise, capabilities and partnerships. As a result the combined business will provide customers with a broader offering of engaging products and services for the Canadian market. Will Golby, Avid Gaming’s CEO, along with other members of the leadership team, will transition to Entain.
The Group is delighted to continue supporting the socioeconomic efforts of the Mohawks of Kahnawà:ke through Sports Interaction’s unique exclusive relationship with Mohawk Online. In line with economic principles adopted by Canada under the United Nations Declaration on the Rights of Indigenous Peoples, Mohawk Online revenues are invested back into the community of Kahnawà:ke to provide essential funding for cultural and language programmes, schools, healthcare and other public services. 50% of Avid Gaming employees in Kahnawà:ke are Mohawk, and in 2020 Mohawk Online revenues played a vital role in Kahnawà:ke’s Covid 19 relief efforts.
Sports Interaction has experienced rapid growth in recent years with gross revenues in 2021 increasing by c40% year on year to CAD76million (approximately £44m1). The business generated EBITDA of CAD18m (approximately £10.4m1) and profits before tax of CAD17.4 million (approximately £10.1m1) in the year ended 31 December 2021 (after the contribution to the community of Kahnawà:ke). As at 30 September 2021, it had gross assets of approximately CAD41.0 million (approximately £23.7m1).
The combination is expected to deliver approximately CAD15 million (approximately £8.7m1) of synergies in 2023, predominantly from technology, content and procurement benefits. This results in a post synergies acquisition multiple for Entain of approximately 7x 2023 EBITDA. The consideration for the acquisition has been paid from existing facilities.
Jette Nygaard-Andersen, CEO of Entain plc, comments: “Sports Interaction is the leading Canadian sports betting and gaming brand and is aligned perfectly with our own ambitions of great customer service and ambitious growth, coupled with an unwavering commitment to sustainability. It is highly complementary to our existing operations in Canada, and the combination of its local expertise and Entain’s powerful platform will provide customers with an unrivalled range of exciting and engaging products in this fast-growing market. We look forward to welcoming Will Golby and his team to Entain.
Investing in the communities where we operate is a key pillar of Entain’s sustainability strategy. We are therefore delighted to be supporting the Mohawk Online socio-economic initiative.”
Will Golby, CEO of Avid Gaming, comments: “We are delighted to be joining forces with Entain, which is an exceptional company combining world-class brands, strong leadership and a winning strategy. It has a unique approach to local markets, and no other company of its scale consistently delivers so many well-executed, localised approaches to the same level of customisation and detail. Entain’s commitment to sustainability, responsible gaming and community investment aligns exactly with our own business philosophy, and we look forward to a bright future together.”
Kahsennenhawe Sky-Deer, Grand Chief of Mohawk Council of Kahnawà:ke, comments: “Entain is a world class operator with a genuine desire to positively contribute to the communities in which it operates. Kahnawà:ke is well known in the gaming industry, not only for our internationally recognized jurisdiction through the Kahnawà:ke Gaming Commission, but also for our socio-economic initiative, Mohawk Online. This new partnership between Entain and the Mohawks of Kahnawà:ke is mutually beneficial, and brings with it prime opportunity for bolstering our self-sufficiency through the continuing success of Sports Interaction.”