US-focused B2B supplier of online gambling solutions GAN announced the acquisition of European iGaming brand Coolbet to spearhead its entry into the US B2C digital gaming and sports betting space.
GAN has agreed to pay €149 million for Coolbet and expects to close the transaction in the first quarter of 2021.
Launched in 2016, Coolbet is an online gambling brand that is focused on Nordic markets, Canada, and Latin America. It offers both real-money gaming and sports betting. The operation is powered by in-house software, including proprietary sports betting technology. Coolbet holds a license from the Malta Gaming Authority.
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GAN has expanded significantly in the US in recent years through partnerships with local casino operators looking to tap into the lucrative online gambling space. The company now looks to expand its foothold in the B2C space and has outlined its plan for that upcoming expansion.
GAN said that it anticipates to integrate Coolbet’s proprietary wagering technology into its own turnkey technology solutions quickly after acquisition closes and that the technology will be ready for launch in the US online gambling market by the second half of 2021.
GAN further noted that the purchase of Coolbet enables it to further leverage its B2B experience and in-house technology into Coolbet’s core markets and across its existing partnerships with casino companies around the world.
A Powerful Combination
Coolbet currently operates in Norway, Sweden, Finland, Iceland, Estonia, and Chile, and recently expanded its operations into Canada and Peru. The company reported revenue of €18.6 million for the first nine months of the year, with half of that coming from sports betting and the other half from online casino.
Commenting on the addition of Coolbet to their operations, GAN Chief Executive Officer Dermot Smurfit said that they believe Coolbet is a perfect fit for his company and its clients as it offers a powerful sportsbook engine that will round out their real money iGaming platform.
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Mr. Smurfit went on to say that Coolbet’s best-in-class and award-winning user interface and in-house sportsbook platform will enable GAN to quickly introduce the sports betting solution to their land-based casino partners across the US and provide them with a “flexible and customizable” product for online gambling.
According to the GAN CEO, the timing of the deal ideally positions his company to leverage a growing customer base and the momentum that sports betting legislation has gained with the recent election results in Louisiana, Maryland, South Dakota, and Tennessee. Voters in the four states approved the legalization of sports betting on November 3.
Mr. Smurfit pointed out that their union with Coolbet makes a powerful combination that will help them achieve significant revenue synergies across both platforms over the long-term. The deal has been designed to be immediately accretive, the official further noted.
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