Unibet Group Plc has signd an agreement to acquire the online gambling division of Stan James Group in a deal worth £19m ($29.3m)
Under the agreement, Unibet will acquire the full rights and ownership of the Stan James Online brand. However, the transaction does not include Stan James’ UK shops business.
In line with standard EU rules on the acquisitions, Stan James’ employees will transfer their employment to Unibet.
Stan James offers online sports betting, casino and poker in the UK market through its website stanjames.com.
In the five month period to 31 May 2015, Stan James’ online business generated revenue of £10.5m and posted £1.4m EBITDA after paying UK point-of-consumption tax.
“We have long been looking at strengthening our position in the UK online market. Stan James as an operator is one of the most well-respected in the UK market with particular strengths in horse-racing and other British sports. Stan James has had a long presence in the British market where there are few companies of this size available for acquisition,” said Henrik Tjärnström, CEO Unibet. “Since Unibet has only recently targeted the UK market there is little overlap between our respective businesses. Over time we see a significant potential to increase the breadth of the Stan James product range, such as live streaming, casino and improving the mobile offering,”
“There is a substantial market opportunity in the UK following the re-regulation. Through the combination of Unibet’s expertise in marketing and financial strength, together with Stan James’ high quality sports and racing betting offering aimed at the UK market, I am confident that we can increase substantially the combined Group’s market share in the UK. I would also like to take this opportunity to thank the shareholders of Stan James for their strong support of the business,” said Denis Kelly, CEO of Stan James Online.
The transaction is subject to regulatory approvals and is expected to complete in the second half of the third quarter 2015.