Unibet Group PLC have made their first earn out payment to the iGame Group, following the fulfillment of criteria pertaining to the sale purchase agreement signed in August 2015. The terms of the contract stated that the previous owners of the iGame Group would receive a windfall of some 7.5 million if they achieved or surpassed a defined set of financial targets for 2015. Having reached and exceeded expectations, the maximum earn out payment was triggered last week.
The details of the purchase agreement include the promise of a further payment of EUR 12.5 million at the end of September 2016 should the iGame Group achieve a new set of targets for the first half of 2016. The signs look promising following the publication of the Groups Q1 figures. Strong performance across all indicators ensure that the Group remains on target to receive the 2nd earn-out payment in full.
Unibet Group PLC outlined the earn out payments when they announced the acquisition of the iGame Group last summer. As such, the amounts paid will not impact upon group finances for 2016. Unibet retained iGame’s 130 strong team of employees as part of the deal and they continue to operate within the expanded structure today. At the time of the takeover, Unibet Group disclosed their expectations that the deal will allow them to offer a wider product portfolio, improved marketing and various other benefits. The scope of the contract saw the iGame Group’s full portfolio transferred to Unibet Group PLC, including all casino, sports betting and poker brands. Having made an initial payment of 59 million to acquire the iGame Group, the earn-out payments could take the overall worth of the deal to just shy of 80 million.
Unibet is one of the biggest online gaming companies on the Swedish Nasdaq stock exchange. The group boasts more than 13.5 million customers and operates through a number of different brands and subsidiaries. The continued expansion of the Unibet portfolio is set to strengthen the company’s reputation in 2016.