Rank Group PLC has acquired Spanish online bingo operator YoBingo.es for EUR52 million in cash, as part of the company’s expansion plans.
“The acquisition of the YoBingo Group expands Rank’s digital footprint in Spain,” said Rank Chief Executive John O’Reilly. “Spain is an exciting high-growth regulated market which we believe offers strong multi-channel potential.”
The gambling company has bought QSB Gaming Ltd, the parent of YoBingo.es, for an initial consideration of EUR21 million. The acquisition consideration also includes further consideration of up to EUR31 million, depending upon the future performance of YoBingo.es.
“The YoBingo Group is a well-established operation that we intend to further develop and to cross-sell into our established Spanish retail operations,” says O’Reilly.
Rank Group expects the deal to be earnings per share accretive and will fund the consideration from its own cash resources.
For 2017, QSB and its units generated revenue and earnings before interest and taxes of EUR10.4 million and EUR2.5 million, respectively.