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Poker.co.uk - Poker News Archive
Tuesday 7th July 2009 Gaming VC Enters Latin American Market
Online casino and sportsbook operator Gaming VC Holdings SA has acquired the business and assets of Latin American site BetBoo.com for an initial consideration of four million dollars in cash plus a three-year earn out.
BetBoo.com was established in 2005 to provide bingo, sportsbetting, poker and casino games to South American customers and was owned by Intera NV, which was based in the Netherlands Antilles.
Gaming VC is the firm behind CasinoClub.com and was awarded a Maltese gaming license in August of 2007, which meant that it could diversify away from its traditional German market. It revealed that BetBoo.com’s senior management team, which is comprised of the site’s three majority owners, would remain after the acquisition.
“This acquisition complements our strategy of continuing to diversify outside of Germany,” said Kenny Alexander, Chief Executive Officer for Gaming VC.
“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.com's presence in this new territory for Gaming VC.'
Gaming VC stated that BetBoo.com has over 3,000 active monthly customers and generated unaudited revenues for the previous twelve months of $4.4 million. The business has no employees and relies on service contracts with third parties supplying customer relationship management systems and IT support.
The total consideration for BetBoo.com is capped at $30 million and will be calculated by reference to five times the audited profits after tax for the twelve-month period up to the third anniversary of the acquisition minus the initial consideration and any interim payments. In addition, interim payments will be made after the first and second anniversaries of the acquisition at the same amount as the audited profits for the preceding year.
Source: OnlineCasinoNews
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