L&G continues acquisition drive

Source: eGaming review Newsletter, 11/11/05

Leisure and Gaming (L&G), the AIM-listed parent company behind Curaçao-based sportsbook and gaming operator VIP, has acquired US sportsbook Nine and long-established casino operator English Harbour.

Nine was acquired for a total consideration of just over US$57m, with an initial US$36m being paid on completion. An additional US$21.1m will be paid depending on the profitability of the Nine brand for the years ending 31 December 2006, 31 December 2007 and 31 December 2008.

English Harbour was acquired for a total consideration of just over US$23m, with an initial US$13.75m being paid on completion. An additional US$7.25m will be paid depending on the profitability of the English Harbour brand for the years ending 31 December 2006 and 31 December 2007.

Commenting on the deal, Alistair Assheton, chief executive of L&G, said: “We are putting into practice the strategy we set out at the time of flotation. We have been highly methodical in how we have gone about it, harnessing our industry knowledge and reputation to do deals where we differentiate ourselves from the rest.”

Assheton said he was satisfied with how L&G and the VIP sports, poker and casino brands had fared since being admitted on AIM in September 2004 and acquiring VIP in June 2005.

“We started out with the L&G shell and have laid solid foundations with the VIP business, its strengths being excellent customer service and retention, revenues and product diversity. By adding Nine and English Harbour to our group, we have acquired proven marketing and customer-acquisition expertise and a casino with a long-standing reputation which is also excellent at retaining high-spending, revenue-generating players,” Assheton explained.

As part of its strategy of growing through acquisition, L&G acquired the Acropolis online casino from Stanley Leisure in late October 2005. Assheton said these deals had been thought through and were the fruit of long-term planning by the L&G management team.

“We have the management in place and will be increasing the product range within our brands to create more revenue lines. With Nine we have added expert marketing skills to our already strong sports betting business and with English Harbour we now have a fantastic casino business. The next step is to make it work on an operational level, which we are confident of doing thanks to our experience and goodwill,” Assheton said.