- Coolbet’s mobile sports betting platform will be entering the US sports wagering market in 2021 through GAN locations in the nation.
- GAN purchased Coolbet to enhance their sportsbook repertoire in the United States as they would like to give their retail locations an option for a mobile platform like that of Coolbet.
LONDON – UK-based internet wagering tech supplier GAN Limited has made a deal to acquire Coolbet which is a strategic move to help strengthen their sports betting endeavors within the US.
The buyout was done with GAN and the platform’s parent company, Vincent Group p.l.c. and should be finalized by the end of Q1 2021. Coolbet was purchased for over $197.5 million.
After all reviews and regulations for the gambling platform have been vetted, GAN can begin integrating Coolbet’s sports betting services into their US markets to help grow their presence within the legal sports betting markets of the United States.
The Details Of GAN’s Latest Acquisition
GAN announced the purchase of Coolbet on Monday and how the contract for the deal was undergoing the proper steps before it could become official.
Of the $197.5 million price, $95 million of that was given to Vincent Group p.l.c. in cash. The remainder of the selling price will be covered by GAN ordinary shares. Presently, they have $57.5 million worth of cash and equivalents but will be receiving new outlets of capital in the weeks ahead to settle up with their acquisition of Coolbet.
Luckily, GAN has time to come up with the rest of the money or the equivalent to that. That is because of the various reviews that Coolbet must undergo to show they are a company that’s history of success in sports betting is something that can be sustained and grow with GAN in the future.
All of the background investigations that have been done on the platform by GAN to date have impressed the tech business enough for them to know they have made a good choice in buying this particular wagering service product.
“Coolbet’s award-winning user interface and proprietary technical platform will enable us to quickly introduce the sportsbook offering to our land-based casino customers across the U.S., who need a flexible and customizable solution to online gaming. Coolbet brings one of the most experienced teams of engineers in the industry and their technology is built on a similar architectural design as our own, which is anticipated to make the integration process fairly seamless,” said Dermot Smurfit, CEO of GAN.
“The timing of the acquisition ideally positions GAN to leverage its growing customer base, as well as the momentum that sports legislation has seen with the election results in Maryland, Louisiana, South Dakota, and Tennessee.”
What This Will Bring To GAN
GAN would like to bring their retail sports betting locations in the United States a great mobile sportsbook option which will be something that can be found with Coolbet.
The platform, which employs 175 people in various parts of Europe with Estonia serving as its main location, will bring GAN the opportunity to employ more people across the globe as they take on these individuals at Coolbet who will now become GAN employees once the deal goes through.
“This union brings two of the best-in-class, high-growth offerings in the iGaming space together, and makes a powerful combination. We expect to achieve significant revenue synergies across both platforms over the long-term and have structured the deal to be immediately accretive,” said Smurfit. “We are excited to welcome the Coolbet team to GAN and look forward to building one of the most complete solutions in our industry. We view this acquisition as part of our unwavering commitment to shareholder value and our long-term growth strategy.”
Coolbet brought in $662.8K from Q1-Q3 2020 in earnings and over $123M in revenue with their mobile sportsbook application during this time.
In 2019, they saw over $344.6M in revenue for the year split evenly with their online casino and sports betting operations.
While GAN investors are not as excited by this deal, as their stock price dipped by about 5% on Monday after the news broke, Coolbet is also expected to have what it takes to help the company expand its sports wagering business in the US.
Along with their current locations in the United States, GAN hopes to bring Coolbet with them into newly legalized sports betting markets and capitalize on these industries while they are just starting out.
Christina has been writing for as long as she can remember and does dedicated research on the newly regulated sports betting market. She comes from a family of sports lovers that engage in friendly bets from time to time. During the winter months, you can find Christina baking cookies and beating the entire staff at Mario Kart…the N64 version of course.