The parent company of VIP Sports has entered into conditional agreements to acquire Nine.com for up to $57.1 million and English Harbour for up to $23.25 million.
Nine.com is licensed in Curacao with operations in Costa Rica offering sports betting, horse racing, casino gaming and poker. The group includes also the BetCom and MyBookie brands.
In 2004 the company recorded revenues of $178.7 million and a profit before tax of $3.2 million.
The initial consideration of $36.0 million will be split $21.6 million in cash and $14.4 million in shares, with a deferred consideration of up to $21.1 million dependent upon the profitability of Nine.com up to 2008.
English Harbour is run out of Antigua and is one of the oldest internet casino. It operates on proprietary technology, providing a portfolio of brands including English Harbour, Silver Dollar and the Super Slots Casino.
In 2004 the company recorded revenues of $18.8 million and a profit before tax of $3.2 million.
The initial consideration of $16.5 million will be split $8.25 million in cash and $8.25 million in shares, with a deferred consideration of up to $6.75 million dependent upon the profitability of English Harbour up to 2007.
Leisure & Gaming will fund the acquisitions through a share placing of up to £24.375 million, fully underwritten by Altium Capital.
The acquisitions are not conditional upon each other and require the approval of shareholders in a extraordinary general meeting which will be held on December 5.
To read the full details of the deals and the background of the companies involved, click here.