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Entain Acquires Avid Gaming for $237 Million
By Shane Addinall Feb 10, 2022 IndustryBritish sportsbook giant Entain plc fortifies their Canadian footprint with their acquisition of Avid Gaming and its popular subsidiaries that include Sports Interaction. The deal closed at CAD300 million ($237m) with Middlebrook Investments.Entain plc announced an exciting addition to their business portfolio earlier this week. The international gaming, sports betting, and interactive operator confirmed their acquisition of Deis Ltd, Avid Gaming. Entain forked out CAD300 million to seal the deal which expands their Canadian foothold.
The agreement includes Avid Gaming’s subsidiaries such as the leading Canuck sports betting brand, Sports Interaction. Entain gained the gaming company from Middlebrook investments and Avid has offices in the Mohawk Territory of Kahnawà:ke, Ireland, and headquarters in Jersey, Channel Islands.
News of the $237 million deal comes shortly after Entain’s application for a gaming licence with iGaming Ontario and compliments their existing sportsbook offering in the country.
Goals for the Future
Entain has clear goals for the Canadian igaming market with its very attractive growth trajectory. Together with their existing brands bwin, PartyCasino, and partypoker, this acquisition positions the company for excellent growth. This deal and the prospect of a licence to operate in Ontario align the company’s goals and sustainability strategy.
Jette Nygaard-Andersen, CEO of Entain plc, commented saying:
“Sports Interaction is the leading Canadian sports betting and gaming brand and is aligned perfectly with our own ambitions of great customer service and ambitious growth, coupled with an unwavering commitment to sustainability.”
Mohawk Online wholly operates Sports Interaction and Avid Gaming exclusively licences the betting brand’s trademark. Will Golby, CEO of Avid Gaming, moves to Entain with more members of his executive team joining.
Socioeconomic Investment
The Mohawk Council of Kahnawà:ke (MCK) owns gaming operator Mohawk online, which is a socio-economic initiative. Sports Interaction’s ties with the initiative remain in place and Entain’s CEO expressed their delight to be part of the project. Canadian economic principles under the United Nations Declaration on the Human Rights of Indigenous Peoples guide the initiative. Andersen said:
“Investing in the communities where we operate is a key pillar of Entain’s sustainability strategy. We are therefore delighted to be supporting the Mohawk Online socio-economic initiative.”
Revenue generated through Mohawk Online directly impacts the community, as it provides funding for cultural and language programs, schools, healthcare, and public services. Avid Gaming boasts a 50% Mohawk workforce and the essential funding from Mohawk Online played an integral role in Kahnawà:ke’s Covid-19 relief efforts.
Grand Chief Kahsennenhawe Sky-Deer, of the Mohawk Council of Kahnawà:ke, expressed his respect for Entain. He believes the deal is mutually beneficial, and the company has a sincere interest in contributing to communities.
The Numbers
Entain Group described growth figures for Sports Interaction as rapid in recent years. Figures show that the sportsbook had a 40% year on year growth for the period ending in 2021. Closing the period on CAD76 million and generating EBITDA of CAD18 million, they generated profits of CAD17.4 million. This total is before tax deductions and after the contribution to the Kahnawà:ke community.
The appreciation of Sports Interaction’s gross assets at the end of September 2021 was CAD41 million and Entain reports that their partnership should deliver CAD15 million of synergies in 2023. They expect this to materialise mainly through technology, content, and procurement benefits. The result is a post-synergy gain multiple of 7 x 2023 EBITDA for the Entain Group.
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