Entain strengthens position in Dutch market with acquisition of BetCity

The owner of Ladbrokes and Coral has strengthened its position in the Netherlands with the acquisition of local operator BetCity for an initial £257 million (€300m).

Entain said BetCity had a market share of around 20 per cent in the fast-growing Dutch market and that the operator's offering would complement its bwin and Party brands which are still awaiting approval for a licence to operate in the Netherlands.

The deal has a deferred contingent consideration of up to £472m (€550m) and is expected to be completed during the second half of 2022.

Melvin Bostelaar, BetCity's chief executive, along with other key members of the leadership team, will remain with the company, Entain added.

Entain chief executive Jette Nygaard-Andersen

Entain chief executive Jette Nygaard-Andersen said: "We are delighted that BetCity is joining Entain and are excited by the significant opportunities in the newly regulated Dutch market.

"This acquisition will provide customers with an even better experience as we combine BetCity's local expertise and brand alongside Entain's market leading, customer focused platform.

"This transaction further underpins our growth strategy of operating in attractive regulated markets. We look forward to working with Melvin and the BetCity team."

Bostelaar said BetCity was happy to be joining forces with a "world-class group" in Entain.

He added: "Together we will be well placed to maintain a strong market position in the Dutch market for the coming years."

Analysts at stockbrokers Davy said the acquisition "alters Entain’s position in the Dutch market".

They added: "While its own brands are unlikely to re-enter the Netherlands until later this year, it will now also own a leading local operator with an established customer base. On first glance, it looks like an attractive strategic step, complementary to Entain's own Dutch brand and broader online platform position."

Entain's share price was down 1.5p at 1,339.5p on Tuesday afternoon.

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