Betsson Group and FDJ Group have agreed to a deal for Betsson Group to purchase Sporting Solutions’ trading, pricing, and risk management offerings in sports betting.
Betsson announced the agreement, saying it will integrate Sporting Solutions advanced pricing feeds both for pre-match betting and live wagering, strengthening its B2C as well as B2B offerings.
Sporting Solutions was founded in 2007 and is a UK based business. It also has operations in Canada and South Africa. The platform works with major lotteries and operators including 888Sport and SkyBet.
Sporting Solutions said it would continue to offer services to B2B bettors in a LinkedIn statement.
Acquisitions are subject to approval by regulatory authorities and other conditions. The acquisition will be completed once the transaction has been cleared as both parties expect. The financial terms of the deal were not revealed.
Betsson has now made its second B2B acquisition in the past year. In February, it purchased Dutch gaming studio Holland Power Gaming with their B2C operations for EUR27.5m.
Martin Ohman, Betsson’s CFO during the Q2 results call held in July this year, insisted that Betsson is prioritising M&A at present. We are currently in a phase of growth. He said that M&A is something we enjoy and, when you come across good M&A prospects, this should be your first priority.
Betsson’s acquisition is a strategic fit
Jesper Svensson said that the Betsson CEO was pleased with this deal because it would help Betsson to increase revenue and open up new business opportunities.
Svensson stated, “We’re excited to welcome Sporting Solutions to Betsson Group.” This acquisition provides us with high-quality technology, which is already integrated in our sportsbook.
It complements Betsson’s B2B sportsbook strategy by strengthening flexibility and scalability. These are both key elements in our B2B business strategy.
In a statement, FDJ emphasized a strategic refocus on international activities through its B2C as well as B2B2C business models in the lottery, online gambling and sports betting markets.
FDJ clarified Betsson’s acquisition of the platform’s risk management and price-setting activities. This does not include, however, the managed sports betting services provided by FDJ to lottery operators.
Betsson and FDJ both perform well
Betsson’s and FDJ’s positive Q2 and H1 results prompted the acquisition.
Betsson’s revenue, EBITDA, and net profit were all driven by a 25,4% increase year on year in the number of active players.
The revenue from sports betting activity in the second quarter grew 12.8%, to EUR78.4m. This represents a 12.8% increase year on year. Betsson’s weaker segments such as poker and bingo, which accounted for the remainder of EUR2m (down 13.0%), were offset by this.
FDJ’s first-half revenue increased by 10.8%, to EUR1.43bn. Sports betting and online gambling revenue increased by 14.5%, to EUR294m. However, the Euro 2024 soccer tournament did not meet expectations in the second half of the first quarter.
FDJ has been active in M&A for some time now. The Sporting Solutions deal is one of the most recent. The group bought both Zeturf and Premier Lotteries Ireland last year. Both deals had an impact on H1. FDJ reported that the digital revenues grew 39.8% as a result of both acquired companies.
