The German betting provider acquired a 38 per cent stake in the holding company QED Ventures Ltd, which operates the myBet.com brand via its fully owned Malta subsidiary Personal Exchange International Ltd, for EUR 3 million.
FLUXX intends to increase its share in QED at a later stage and to secure a majority interest of up to 81 per cent.
In 2005, myBet.com, which operates 16 betting shops and an online betting exchange with 8,000 active players, reported a betting volume of around EUR 12 million, with revenue of approximately EUR 0.5 million and a loss anticipated to be in the order of EUR 1.3 million. The company expects to see a sharp rise in revenues in 2006, while break-even is targeted for 2007.
“The acquisition of myBet.com will serve to trigger off sports betting activities for the FLUXX Group. We now have a stake in an attractive sports betting product that fits in ideally with our existing product portfolio, in perfect time for football\’s 2006 World Cup. We believe the integration of myBet.com offers considerable synergy potential – in both the online and shop spheres,” said Rainer Jacken, Board spokesman of FLUXX AG.
Calculators
