Super Group Announces Key Terms of Strategic Transaction to Assume Full Control of its Sportsbook Technology Platform
08 Maggio 2024 - 1:29PM
Business Wire
Super Group (SGHC) Limited (NYSE: SGHC), the parent company of
Betway, a leading online sports betting and gaming business, and
Spin, the multi-brand online casino, today announced that it has
entered into definitive agreements to assume full control of its
sportsbook software technology licensed by Apricot, Super Group’s
long-standing software partner.
The transaction brings Super Group closer to its goal of fully
owning and controlling its sportsbook technology across its
worldwide markets, giving the company the capability to apply this
technology stack to any properties it may buy or build in the
future.
Super Group has agreed to acquire this technology for a total
consideration of c.€140 million from Apricot’s licensor, plus
additional amounts payable if certain earn-out conditions are
achieved. The upfront consideration consists of c.€100 million,
which will be paid in the form of cancellation of an outstanding
loan. Super Group will pay an additional €40 million in two equal
payments over the next two years, of which up to €20 million may be
paid in ordinary shares of Super Group at its sole discretion.
Additional payments of up to €210 million could be made through a
contingent earn-out mechanism if Super Group’s sportsbook revenue
more than doubles during the earn-out period which runs through
December 31, 2035. The earn-out is calculated as a percentage of
monthly sportsbook net gaming revenue, ranging from a low
single-digit to high single-digit percentage.
Neal Menashe, Chief Executive Officer of Super Group, said: "I’m
delighted that we have now concluded terms for the sportsbook – we
have been working closely to agree to an equitable deal with a
favorable structure for both parties. This is an exceptional
opportunity for Super Group to take full control of our sportsbook
technology, which would enable maximum flexibility for organic
growth as well as M&A opportunities. We’ll continue to deliver
the best sports betting and gaming experience to our customers
around the world as the benefits of this deal are realized.”
Closing of the deal is conditional on supplemental licensing
from relevant gambling regulators, which approvals are expected to
take between 6 to 12 months to obtain.
About Super Group (SGHC) Limited Super Group (SGHC)
Limited is the holding company for leading global online sports
betting and gaming businesses: Betway, a premier online sports
betting brand, and Spin, a multi-brand online casino offering. The
group is licensed in multiple jurisdictions, with leading positions
in key markets throughout Europe, the Americas and Africa. The
group’s sports betting and online gaming offerings are underpinned
by its scale and leading technology, enabling fast and effective
entry into new markets. Its proprietary marketing and data
analytics engine empowers it to responsibly provide a unique and
personalized customer experience. Super Group has been ranked
number 6 in the EGR Power 50 for the last two years. For more
information, visit www.sghc.com.
Forward-Looking Statements
Certain statements made in this press release are “forward
looking statements” within the meaning of the “safe harbor”
provisions of the United States Private Securities Litigation
Reform Act of 1995.
These forward-looking statements generally are identified by the
words “believe,” “project,” “expect,” “anticipate,” “estimate,”
“intend,” “strategy,” “future,” “opportunity,” “plan,” “may,”
“should,” “will,” “would,” and similar expressions. Forward-looking
statements are predictions, projections and other statements about
future events that are based on current expectations and
assumptions and, as a result, are subject to risks and
uncertainties. Forward-looking statements in this press release
include statements regarding the planned acquisition of the
sportsbook software technology, the expected timing for regulatory
approvals and closing of the transaction, the economic terms for
such acquisition, including the amounts and form of consideration
payable by Super Group, the integration of the technology and team
into Super Group’s business, Super Group’s plans for further market
expansion, and other statements that are not historical fact. Many
factors could cause actual future events to differ materially from
the forward-looking statements in this press release, including but
not limited to: (i) the ability to implement business plans,
forecasts and other expectations, and identify and realize
additional opportunities; (ii) the ability to maintain the listing
of Super Group’s securities on a national securities exchange;
(iii) changes in the competitive and regulated industries in which
Super Group operates; (iv) variations in operating performance
across competitors; (v) changes in laws and regulations affecting
Super Group’s business; (vi) Super Group’s inability to meet or
exceed its financial projections; (vii) changes in general economic
conditions; (viii) changes in domestic and foreign business,
market, financial, political and legal conditions; (ix) future
global, regional or local economic and market conditions affecting
the sports betting and gaming industry; (x) changes in existing
laws and regulations, or their interpretation or enforcement, or
the regulatory climate with respect to the sports betting and
gaming industry; (xi) the ability of Super Group’s customers to
deposit funds in order to participate in Super Group’s gaming
products; (xii) compliance with regulatory requirements in a
particular regulated jurisdiction, or Super Group’s ability to
successfully obtain a license or permit applied for in a particular
regulated jurisdiction, or maintain, renew or expand existing
licenses; (xiii) the technological solutions Super Group has in
place to block customers in certain jurisdictions, including
jurisdictions where Super Group’s business is illegal, or which are
sanctioned by countries in which Super Group operates from
accessing its offerings; (xiv) Super Group’s ability to restrict
and manage betting limits at the individual customer level based on
individual customer profiles and risk level to the enterprise; (xv)
the ability by Super Group’s key executives, certain employees or
other individuals related to the business, including significant
shareholders, to obtain the necessary licenses or comply with
individual regulatory obligations in certain jurisdictions; (xvi)
protection or enforcement of Super Group’s intellectual property
rights, the confidentiality of its trade secrets and confidential
information, or the costs involved in protecting or enforcing Super
Group’s intellectual property rights and confidential information;
(xvii) compliance with applicable data protection and privacy laws
in Super Group’s collection, storage and use, including sharing and
international transfers, of personal data; (xviii) failures,
errors, defects or disruptions in Super Group’s information
technology and other systems and platforms; (xix) Super Group’s
ability to develop new products, services, and solutions, bring
them to market in a timely manner, and make enhancements to its
platform; (xx) Super Group’s ability to maintain and grow its
market share, including its ability to enter new markets and
acquire and retain paying customers; (xxi) the success, including
win or hold rates, of existing and future online betting and gaming
products; (xxii) competition within the broader entertainment
industry; (xxiii) Super Group’s reliance on strategic relationships
with land based casinos, sports teams, event planners, local
licensing partners and advertisers; (xxiv) events or media coverage
relating to, or the popularity of, online betting and gaming
industry; (xxv) trading, liability management and pricing risk
related to Super Group’s participation in the sports betting and
gaming industry; (xxvi) accessibility to the services of banks,
credit card issuers and payment processing services providers due
to the nature of Super Group’s business; (xxvii) the regulatory
approvals related to proposed acquisitions and the integration of
the acquired businesses; and (xxviii) other risks and uncertainties
indicated from time to time for Super Group including those under
the heading “Risk Factors” in our Annual Report on Form 20-F filed
with the SEC on April 25, 2024, and in Super Group’s other filings
with the SEC. The foregoing list of factors is not exhaustive. You
should carefully consider the foregoing factors and the other risks
and uncertainties described in other documents filed or that may be
filed by Super Group from time to time with the SEC. These filings
identify and address other important risks and uncertainties that
could cause actual events and results to differ materially from
those contained in the forward-looking statements. Forward-looking
statements speak only as of the date they are made. Readers are
cautioned not to put undue reliance on forward-looking statements,
and Super Group assumes no obligation and does not intend to update
or revise these forward-looking statements, whether as a result of
new information, future events, or otherwise. Super Group does not
give any assurance that it will achieve its expectations.
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