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$GAN Announced Agreement to Acquire Coolbet
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Acquisition price is €149m paid with a combination of cash and stock. It values Coolbet at TTM EV/S 5.7x, vs GAN at NTM EV/S 10.1x (CiQ est). The transaction is expected to close in Q1’21. https://www.businesswire.com/news/home/20201116005989/en/
: Acquisition price is €149m paid with a combination of cash and stock. It values Coolbet at TTM EV/S 5.7x, vs GAN at NTM EV/S 10.1x (CiQ est). The transaction is expected to close in Q1’21. https://www.businesswire.com/news/home/20201116005989/en/
Congrats to Jan and the Coolbet team! As a board member and early investor I am happy to be a part of the Coolbet journey. Coolbet is a fast growing b2c igaming operator with a proprietary sports book, that has strong foothold in the Nordics and great momentum in Latam and Canada
It was started by Jan Svendsen who founded Nordicbet back in the days, that was later sold to Betsson €85m.
Coolbet truly offers something special with its proprietary sports book and unique marketing strategy with focus on brand building rather than on affiliate marketing.
Coolbet truly offers something special with its proprietary sports book and unique marketing strategy with focus on brand building rather than on affiliate marketing.
It has led to arguably the lowest CPA and highest retention rate (85% q/q in 2020) in the industry. Coolbet has proven global potential with strong standing in markets such as Finland and Chile, which in turn has led to revenue CAGR of 46% in a highly competitive market (18-20).
Coolbet took a strategic approach towards the US market when PASPA was repealed in 2018 by entering Latam and Canada. The decision was a clever one imo, as they showed strong success in the neighbouring markets with less competition, while attracting interest from US players.
Why I believe GAN+Coolbet is a good match: GAN is a b2b technology platform supplier with a player account management system (PAM). Coolbet is a b2c operating with marketing expertise and a proprietary sports book.
GAN has strong standing in the US, especially amongst land-based casino operators. Coolbet has a strong foothold in the Nordics and great momentum in Latam. As a combined company, GAN+Coolbet will be able to tap into each others markets in the future.
Further, GAN will gain valuable marketing knowhow that will be valuable for US landbased casinos that wishes to go online, as well as increase its value offering by integrating Coolbet’s proprietary sportsbook into GAN’s turnkey technology solution.
Our investment network owns a large part of Coolbet so I am very happy that we have settled this deal in what I believe will become a great strategical fit and complementary vertical for GAN.
After the news have digested a bit in the market and we receive more information about the announcement, I will write a longer post on my thoughts about the acquisition and the two companies combined. Conf call out now: https://www.webcast-eqs.com/ganlimited20201116/en
