Casinos for youMalta-based Novibet is pursuing a public debut through a business combination with Artemis Strategic Investment, a Nasdaq-listed blank check firm. After securing a spot on the stock exchange, the company plans an aggressive expansion strategy in Europe.
Logflex MT Holding Limited, the parent company behind the European iGaming and sports betting giant Novibet, is going public. The Malta-based gaming company has entered into a merger agreement with a Nasdaq-listed Special Purpose Acquisition Company (SPAC) – Artemis Strategic Investment Corporation. Novibet will go public on the Nasdaq stock market through this business combination after creating a new wholly-owned subsidiary.
The merger deal, which has a pre-transaction valuation of $625 million, received the full backing of the Board of Directors of Novibet and Artemis. According to a joint announcement from the two parties, the transaction’s completion is planned for the second half of 2022. Upon completion, Novibet’s ordinary shares will be listed in the Nasdaq stock market, with Artemis founders and stakeholders having about a 75% stake in the combined company.
Rodolfo Odoni, the current owner of Novibet, will serve as the chairman of the New Novibet. George Athanasopoulos, the chief executive of Novibet, will also maintain his current role. In addition, Artemis will be given the option of appointing two representatives to the Novibet board. Expressing confidence and enthusiasm in the deal and highlighting Novibet’s tech prowess, Novibet’s chairperson and co-Chief Executive Officer Holly Gagno said:Quote
“Novibet has a strong record of success developing a superior technical platform to address the global iGaming opportunity in a manner that delivers profitable financial performance and cash flow. This record, combined with its demonstrated ability to successfully and profitably enter new markets as well as the significant opportunity to leverage its competitive advantages in new markets, including in North America, aligns with our original investment thesis and makes Novibet an ideal partner for Artemis.”
Gagno previously served as the VP for Entertainment at Ceasars Entertainment before leaving the company.
A Strategic Plan to Venture into New Profitable Markets
Following the public debut, Novibet plans to use its proceeds from the Nasdaq listing to propel its global expansion strategy. The company specifically targets growth in the European, Latin America, and North American markets. The Latin America move shouldn’t really surprise anyone, as the region has recently become one of the fastest-growing iGaming and online sports betting markets.
When it comes to the question of how much room for growth is present in the said target expansion markets, Novibet has crunched the numbers, and they are pretty encouraging. The Malta-based company estimates over $4 billion worth of untapped market in the Latin American region that is now correctly so, receiving attention from various gambling companies.
The announcement comes just as Novibet is on the brink of finalizing an agreement with a land-based operator in Mexico. And from what industry insiders are saying, this SPAC merger agreement is touted to be one that formally introduces Novibet to the lucrative Latin American market. The company is also in the process of inking agreements with key industry players in other Latin American countries like Brazil, Colombia, Argentina, and Chile.
In Europe, the operator also sees a $29 billion opportunity by 2026. In this continent, it is targeting expansions to the Netherlands, Romania, Sweden, Belgium, Hungary, France, and Spain. The expansion into these countries is planned to occur through mergers and acquisitions that will help Novibet get an easier foothold there as opposed to starting from scratch.
Moreover, Novibet is also setting its sights on North America, a vision best embodied by Novibet’s Chief Executive Officer George Athanasopoulos’s words:Quote
“We see a significant growth opportunity in North America as our planned launch of operations in the U.S, Canada, and Mexico will significantly grow our TAM with our expected initial market access agreements for seven states enabling us to reach 14% of the US population. We believe our execution on these strategies will result in consistent cash flow growth. Combined with our new access to the US financial markets, it will help us continue to invest in growth opportunities and drive significant long-term shareholder value.”
Money Spinning Future Prospects
Whatever way you look at this deal, it just screams of very many positive outcomes for Novibet. The company believes so, too, indicating that it expects to generate $156 Million in net gaming revenue and EBITDA of $22 Million from iGaming and OSB operations in four of Europe’s regulated markets: Ireland, Italy, Greece, and Malta.
All the signs now point to a great business move for all the parties involved in this deal to keep up with Novibet’s growth streak over the past three years. In part of his official statement following the announcement of the Nasdaq pursuit, Gagnon added that:Quote
“Over the last three years, Novibet has consistently grown iGaming and sports betting users while also increasing the number of bets or hands played per user, resulting in a nearly 69% increase in the twelve-month value of each user to $617 in 2021 when compared to 2019. We are confident that Novibet’s proven, efficient, digital-focused customer acquisition strategy and depth of content offerings will enable it to deliver continued profitable growth as it launches its North American offerings beginning early next year.”
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