Super Group to Acquire Sports Betting Technology Firm Apricot
The betting behemoth, Super Group, is preparing to purchase Apricot, a sports wagering technology firm, to bolster its Betway brand. This information surfaced prior to the company’s release of its third-quarter financial report.
Super Group affirmed that its full-year financial objectives for 2022 remain on schedule. They also indicated that their third-quarter earnings, set to be unveiled on November 22nd, align with their revised projections from the second quarter.
The corporation had to adjust its financial targets in August due to the unpredictable economic climate earlier in the year. Despite this, they still anticipate revenue to fall between €1.15 billion and €1.28 billion, with adjusted EBITDA ranging from €200 million to €215 million.
Super Group is also actively pursuing the acquisition of Digital Gaming Corporation, which is anticipated to be finalized in January. This acquisition will grant them access to the US online sports wagering and iGaming market.
In September, Super Group also secured a controlling interest in Jumpman Gaming, a UK online casino enterprise.
The Super Group declared that this agreement will give them more chances in the UK and other global markets. Jumpman can utilize its exclusive technology to grow in these markets.
Jumpman contributed roughly €7 million to net earnings in September and reached a positive EBITDA. However, Super Group stated that its previously released financial forecast for 2022 did not include Jumpman’s performance.
Moreover, Super Group stated that its Betway and Spin brands successfully moved their operations to the regulated market in Ontario in the latter half of 2022, as anticipated.
Obtaining sports betting technology
In addition, the group said that it has started talks with Apricot, its long-term partner and sports betting provider in several regions, to “significantly increase the dedicated development resources available to Betway” as its exclusive licensee for sports betting.
This will involve increasing spending and investment in software development in the coming quarters, which may include providing a loan of up to €43 million to Apricot to finance the dedicated resources for Betway.
Apricot was formerly known as Microgaming Software Systems and was renamed Apricot in 2018.
In light of this added expense, Super Group and Apricot have initiated talks regarding the potential for Super Group to gain complete control of the sports wagering enterprise through a buy option for a replica of the underlying technology.
These talks are still in their nascent stages, and Super Group has indicated that it cannot assure a definitive agreement will be finalized.
“We are taking action to fortify Super Group, streamline our financial framework, and position the company for future expansion,” remarked Neal Menashe, Chief Executive Officer of Super Group. “Concerning discussions about our sports betting operations, we are investigating the potential advantages of possessing the technology alongside our long-standing associates.
“I anticipate discussing our performance and operational updates in greater detail subsequent to the release of our third-quarter financial results on November 22.”
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