Entain buys Avid Gaming for $236m
Acquisition includes Canadian online betting/gaming brand Sports Interaction.
Global sports betting, gaming and interactive entertainment operator Entain on Monday said it has acquired Deis Ltd (Avid Gaming) for CA$300m (US$236.4m) from Middlebrook Investments Limited.
Avid Gaming owns Sports Interaction, an online sports betting brand operating in Canada. It is headquartered in Jersey (Channel Islands), with offices in the Mohawk Territory of Kahnawà:ke and Ireland.
The parties noted Avid Gaming exclusively licenses the Sports Interaction trademark and provides proprietary online betting and gaming products and services to the Mohawk Council of Kahnawà:ke (MCK) and the Mohawk Online socioeconomic initiative. Mohawk Online, which is wholly-owned by the MCK, operates Sports Interaction in Canada.
Entain described Canada as a “highly attractive and fast-growing” sports betting and gaming market. Company officials said in a statement combined with Entain’s application for an Ontario license, this acquisition provides an “excellent opportunity to drive further growth, in line with the group’s growth and sustainability strategy.”
According to Entain, Sports Interaction’s sports-led offering is highly complementary to Entain’s existing Canadian business, comprising the Party and bwin brands. The parties said their combination will bring Entain’s global scale and platform together with Sports Interaction’s local expertise, capabilities and partnerships.
“As a result, the combined business will provide customers with a broader offering of engaging products and services for the Canadian market,” they said.
Will Golby, Avid Gaming’s CEO, along with other members of the leadership team, will transition to Entain.
Entain said it will continue to support the socioeconomic efforts of the Mohawks of Kahnawà:ke through Sports Interaction’s unique exclusive relationship with Mohawk Online.
In line with economic principles adopted by Canada under the United Nations Declaration on the Rights of Indigenous Peoples, Mohawk Online revenue is invested back into the community of Kahnawà:ke to provide essential funding for cultural and language programs, schools, healthcare and other public services. Some 50% of Avid Gaming employees in Kahnawà:ke are Mohawk, and in 2020 Mohawk Online revenues played a vital role in Kahnawà:ke’s Covid 19 relief efforts, the company said.
According to Avid Gaming, Sports Interaction has experienced “rapid growth” in recent years, with gross revenue in 2021 increasing by 40% year on year to CA$76m. The business generated EBITDA of CA$18m and profits before tax of CA$17.4m in full year 2021 (after the contribution to the community of Kahnawà:ke).
As of September 30, 2021, it had gross assets of approximately CA$41m.
Per projections released Monday by Entain and Avid, the combination is expected to deliver approximately CA$15m of synergies in 2023, predominantly from technology, content and procurement benefits. Entain said it expects a post synergies acquisition multiple of approximately 7x 2023 EBITDA.
The consideration for the acquisition has been paid from existing facilities, Entain added.
“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,” Jette Nygaard-Andersen, CEO of Entain, said in a statement. “It is highly complementary to our existing operations in Canada, and the combination of its local expertise and Entain’s platform will provide customers with an unrivalled range of exciting and engaging products in this fast-growing market. We look forward to welcoming Will Golby and his team to Entain. 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.”
Golby added: “We are delighted to be joining forces with Entain, which is an exceptional company combining world-class brands, strong leadership and a winning strategy. It has a unique approach to local markets, and no other company of its scale consistently delivers so many well-executed, localized approaches to the same level of customization and detail. Entain’s commitment to sustainability, responsible gaming and community investment aligns exactly with our own business philosophy, and we look forward to a bright future together.”
Kahsennenhawe Sky-Deer, Grand Chief of Mohawk Council of Kahnawà:ke, chimed in: “Entain is a world class operator with a genuine desire to positively contribute to the communities in which it operates. Kahnawà:ke is well known in the gaming industry, not only for our internationally recognized jurisdiction through the Kahnawà:ke Gaming Commission, but also for our socio-economic initiative, Mohawk Online. This new partnership between Entain and the Mohawks of Kahnawà:ke is mutually beneficial, and brings with it prime opportunity for bolstering our self-sufficiency through the continuing success of Sports Interaction.”
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