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Rank Group PLC has bought YoBingo.es, a Spain-based online bingo operator, for EUR52 million in an all-cash deal. This is part of the company’s geographic expansion plans.
Briefing the media on the acquisition, Rank Chief Executive John O’Reilly said: “The acquisition of the YoBingo Group expands Rank’s digital footprint in Spain. Spain is an exciting high-growth regulated market which we believe offers strong multi-channel potential. The YoBingo Group is a well-established operation that we intend to further develop and to cross-sell into our established Spanish retail operations.”
Under the deal, Rank has bought QSB Gaming Ltd, the parent of YoBingo.es, for an initial consideration of EUR21 million. The acquisition consideration also includes further consideration of up to EUR31 million, depending upon the future performance of YoBingo.es.
Rank Group expects the deal to be earnings per share accretive and will fund the consideration from its own cash resources.
For 2017, QSB and its units generated revenue and earnings before interest and taxes of EUR10.4 million and EUR2.5 million, respectively.
Shares in Rank Group were trading 2.8% higher at 159.30 pence each on Tuesday morning.
Source: Alliance News Limited
Source: European Gaming News
