Net Gaming has signed a letter of intent to acquire affiliate assets, primarily in the DACH region (Germany, Austria and Switzerland)

STOCKHOLM, April 20, 2018 – The operations show strong growth and are currently expected to generate quarterly sales of approximately EUR 200,000, with an operating margin of approximately 75%. About 75% of the revenues are generated via revenue sharing.

“I am very pleased that we have the opportunity to strengthen our position in the DACH region. This is an exciting market which we consider to have good growth opportunities ahead. In addition, completion of this transaction will give us further opportunities to grow our existing operations in the region, and expand these assets to other markets,” comments Marcus Teilman, CEO of Net Gaming.

The acquisition of the operations is expected to take place after completion of a due diligence process. The initial purchase consideration of EUR 2.29 million will be settled with existing cash resources. Payment of a maximum additional consideration of EUR 1.25 million may also be required. The additional consideration is based on the outcome of the acquired assets’ EBITA for the 12 months following completion of the transaction. For the full additional consideration of EUR 1.25 million to apply, the outcome of the acquired assets’ EBITA is required to be at least EUR 1.0 million over the next 12 months.