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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Rank Group Plc | LSE:RNK | London | Ordinary Share | GB00B1L5QH97 | ORD 13 8/9P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
1.00 | 1.41% | 72.00 | 71.00 | 72.60 | 71.00 | 71.00 | 71.00 | 84,573 | 16:35:11 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Amusement & Rec Svcs, Nec | 681.9M | -95.3M | -0.2034 | -3.49 | 332.58M |
TIDMRNK
RNS Number : 7938O
Rank Group PLC
22 May 2018
22 May 2018
The Rank Group Plc
LEI: 213800TXKD6XZWOFTE12
Acquisition of YoBingo.es by The Rank Group Plc
The Board of The Rank Group Plc ('Rank') is pleased to announce that Rank has acquired the entire issued share capital of QSB Gaming Limited ('QSB'), owner of YoBingo.es, a leading Spanish digital bingo business for an initial consideration of EUR21 million and, subject to future performance, up to a maximum consideration of EUR52 million in cash (the 'Acquisition').
Strategic highlights
-- Secures a strong digital bingo and casino presence in Spain, a high growth regulated digital gaming market;
-- Top 2 online bingo operator in Spain with a greater than 30% bingo market share and over 5% slots market share;
-- Provides Rank with a proprietary platform including online bingo, roulette and video bingo content for the Spanish market with strong potential to support other regulated markets;
-- Provides a brand with strong national recognition in Spain; -- Accelerates the multi-channel strategy of Rank's established Spanish brand, Enracha; and -- Deepens Rank's commitment to the Spanish gaming market.
Financial highlights
-- For the year ended 31 December 2017, QSB and its subsidiaries (the 'YoBingo Group') generated revenue and EBIT of EUR10.4 million and EUR2.5 million respectively;
-- Total purchase enterprise value of up to EUR52 million; and -- EPS accretive.
Commenting on the Acquisition, John O'Reilly, Chief Executive of Rank said:
"The acquisition of the YoBingo Group expands Rank's digital footprint in Spain. Spain is an exciting high-growth regulated market which we believe offers strong multi-channel potential. The YoBingo Group is a well-established operation that we intend to further develop and to cross-sell into our established Spanish retail operations."
Enquiries
The Rank Group Plc Sarah Powell, Communications Tel: 01628 504 303 Director FTI Consulting LLP Ed Bridges Tel: 020 3727 1067 Alex Beagley Tel: 020 3727 1045
Overview of the YoBingo Group
The YoBingo Group is currently one of the leading online bingo operators in Spain. Having been established in 2012, shortly after Spain regulated online gambling, YoBingo.es is now a well-recognised brand which offers substantial potential to grow in what is a fast growing market.
Headquartered in Malta and licensed in Spain, the YoBingo Group's principal operating company, Bingosoft plc ('Bingosoft'), operates the website YoBingo.es through which it offers a broad portfolio of games including bingo, slots, video bingo and roulette.
Bingosoft operates on its own gaming platform, which was purpose built for the Spanish online gaming environment and has developed and operates a suite of proprietary games.
Strategic and financial rationale for the Acquisition
Rank believes that Spain is an attractive multi-channel market and that there is significant upside potential in combining Spanish retail and digital bingo and slot operations.
The acquisition of the YoBingo Group brings Rank immediate and significant market share, brand recognition and a platform designed for the Spanish market.
The YoBingo.es brand, proprietary games, bingo engine and platform will allow Rank to:
1. drive scale and diversify our digital earnings in Spain; and 2. differentiate our offering between the YoBingo and Enracha brands.
YoBingo Group management team
The YoBingo Group was founded by experienced online gaming executives who have over 15 years' experience previously pioneering and developing UK online bingo businesses.
In addition to the founders, the YoBingo Group's senior management team comprises individuals with extensive marketing and technology experience in the digital gaming market in Spain and internationally.
All of the senior management will remain with the business following completion of the Acquisition.
Key terms of the Acquisition
QSB has been acquired by Rank Digital Holdings Limited, a wholly-owned subsidiary of Rank, on a cash free and debt free basis from a group of sellers including management, private investors and a subsidiary of Stride Gaming plc.
The initial tranche of consideration (EUR21 million) was paid on completion of the Acquisition, less a retained amount which shall be released 24 months following completion of the Acquisition.
Further consideration will be paid following completion of the Acquisition equal to the EBITDA of the YoBingo Group for the 12-month period ending 31 December 2018 (subject to certain adjustments), multiplied by 8.5, less the initial tranche of consideration.
Further amounts of consideration shall also be paid if specified tax and commercial outcomes arise following completion of the Acquisition. The total consideration payable is capped at EUR52 million.
The gross assets of the YoBingo Group as at 31 December 2017 were EUR3.9 million.
Funding of the Acquisition
Rank will fund the consideration from its own cash resources.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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May 22, 2018 02:00 ET (06:00 GMT)
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