The total consideration to be paid is approximately €4.4m (£3.8m/$5.1m), with B90 to pay an initial €600,000 and issue 19,965,000 new Ordinary Shares. A further cash payment of €1.1m will be made on or before 31 March 2022, though this may be settled by issue of new ordinary shares.
The acquisition includes the domain, business IP and 100% of the operations of Oddsen.nu, which has been operating for over 20 years in its home market of Norway.
Oddsen.nu connects publishers with affiliate programs that allow them to promote sports betting offers, a wide range of sports news, events, analysis and forecasts. The site also operates a forum where users can discuss sports betting.
For the financial year ending 31 December 2020, the assets being acquired as part of the agreement generated €781,000 in revenue and €616,000 in net profit.
“The acquisition of Oddsen continues the transformation of our business,” B90 exectuive chairman Paul Duffen said. “This transaction adds a valuable new domain to our online real estate; increases our affiliate marketing capability; and takes our operations into Norway, which is an attractive, stable and well-established market for sports betting.
“We believe that the acquisition is an important step into owning proprietary software and taking control over valuable parts of the value chain in our industry.”
To help finance the deal, B90 has raised £1.2m, before expenses, through a subscription of 8,888,465 new ordinary shares.
Aside from funding the acquisition, proceeds from the subscription will be used to increase working capital and support the expansion of the group’s operations.
“Coupled with the fundraise, which gives a strong indication of the support that our stakeholders have for our growth strategy, our business now has a real operational and financial platform from which to grow,” Duffen said.
“We consider it a strategic acquisition that can be used as a platform to be rolled out in other markets as well.”