Spiffbet to Acquire Manisol Gaming
Sweden-based online operator and supplier Spiffbet has recently signed a letter of intent indicating that it will be acquiring operator Manisol Gaming, which owns the highly-popular Scandibet and TurboVegas platforms. Records show Spiffbet is willing to pay SEK20m to acquire Manisol Gaming’s brands but will acquire SEK10m in debt as a result.
Cash or Newly Issued Shares are Payment Options Currently on Table
In its upcoming takeover of Manisol Gaming, which will include the popular Scandibet and TurboVegas betting platforms, Swedish supplier Spiffbet is prepared to pay upwards of SEK20 million to secure the deal.
However, it will also likely accrue approximately SEK10 million in debt in the process of taking over Manisol Gaming. This therefore makes the initial debt-free cost of acquiring Manisol Gaming SEK30 million.
SEK6 million is the price at which an additional purchase consideration may be made by Spiffbet by the end of 2022. This, however, is entirely dependent on reaching specific financial targets.
Worth noting is how the payment required for Spiffbet to officially acquire Manisol Gaming can be made either in cash or, alternatively, with 50 million newly issued Spiffbet shares.
At the time of writing, Spiffbet’s shares are currently trading at €0.031 each on the Nasdaq First North Exchange.
Spiffbet is expected to issue upwards of 109.5 million new shares in the event the share option is chosen as the final form of payment.
The remaining shares will likely be directed towards existing major owners, as well as to those who received shares when Spiffbet acquired Cashmio.
Pivoting over to Manisol Gaming, the operator currently holds flagship sites in operation in Sweden and Malta which use its Together Gaming platform, all of which falls under the Berthard license umbrella.
More Acquisitions Likely on the Horizon for Spiffbet
As an already major player in the Swedish gambling market, the announcement of Spiffbet’s incoming acquisition of Manisol Gaming is expected to only further strengthen its competitive position, according to chief executive Henrik Svensson.
“With this acquisition, Spiffbet reaches a critical mass and becomes a player to be reckoned with in the gaming industry. This also opens up opportunities for major acquisitions and structural deals in the future.”– Henrik Svensson, Chief Executive, Spiffbet
Manisol Gaming is most likely not to be the last of Spiffbet’s acquisitions in the near future, given that just recently in August 2020 — the supplier closed a deal to acquire Goliath Holding, the parent company of online casino vertical Goliath Casino, for roughly SEK2.6 million.
Spiffbet chief executive Henrik Svensson himself confirmed the company’s desires to lead further acquisitions in the gambling world:
“The ambition is to get the maximum return on the advantage of being listed on the stock exchange, through our proven ability to carry out acquisitions and the large cost advantages that can be achieved thanks to higher turnover. This also strengthens the synergy effects between gaming services and our casino operations. We will continue to act as a locomotive for acquisitions.”– Henrik Svensson, Chief Executive, Spiffbet
Taking Over of Manisol Gaming Expected to Bring Boost to Spiffbet
Operator of the popular Scandibet and TurboVegas brands, Manisol Gaming was initially founded, and still owned by Johan Styren.
Styren in fact led LeoVegas’ Malta operations between 2012 and 2017, which happened to be a period of significant growth for the operator.
Styren will now move onto the position of acting strategic advisor to Spiffnet’s board of executives, once the deal with Manisol Gaming becomes finalized.
“It is very fun to find a new owner for Manisol at Spiffbet. Both companies have a good organization with different qualities that I think will work well together. The companies really complement each other and can utilize each other’s strengths.”
Styren likewise views his future at Spiffbet with optimism, explaining how
“It will be very fun to follow the business both as a major shareholder and strategic advisor in the future. And we can now significantly increase the pace of the investments we have already begun with establishment in additional markets, both in and outside Europe.”
Spiffbet Head of Casino Operations Likewise Welcomes Manisol Deal
As former head of LeoVegas group’s Maltese operations Johan Styren prepares to join Spiffbet’s board as strategic advisor, head of casino operations Maria Boelius contributed a statement warmly welcoming Styren and his Manisol co-workers.
“We really welcome Manisol with all employees. It will be a perfect reinforcement of our team and solve part of our recruitment needs.”– Maria Boelius, Head of Casino Operations, Spiffbet
Boelius highlighted Styren’s experience as being crucial in improving Spiffbet’s future prospects in particular:
“It is also an asset to have Johan Styren as a sounding board in the future with his solid industry experience. In one fell swoop, our conditions for growing and creating profitability are improved in a fantastic way.”
The takeover deal between Spiffbet and Manisol Gaming is set to close at the end of February 2021, once due diligence procedures are completed and the final share transfer agreements are fully approved.
Spiffbet’s casinos sales are expected to increase by more than 50% as a result of the deal. And the integration of Manisol Gaming into Spiffbet’s systems will be “relatively easy” due to the fact the two share similar platforms between one another.
Finally, the acquisition is expected to be financed via a private share placement expected to raise upwards of SEK41 million, with a price of SEK0.375 per share.
LeoVegas Group Recently Issued Bond in Sweden
In related news, Swedish operator LeoVegas Group recently revealed in December 2020 that it is exploring its options in issuing a senior unsecured bond, with the goal of spurring its growth development strategy.
Prominent Swedish financial institutions Skandinaviska Enskilda Banken (SEB) and Swedbank were expected to be aiding LeoVegas Group in the issuing of its bond, with investor meetings having already been planned ahead of the bond issue.
A value of SEK500 million (£44.0m/€49.2m/$58.7m) is what the senior, unsecured bond is expected to hold, packaged within an SEK1.2 billion framework and likely maturing after three years.
The bond’s potential proceeds would likely go towards refinancing existing debts and fund future M&A activities, in the event that it is actually successfully issued.