In October 2014, the stocks of Intertain Group (TSE:IT), parent company of an online gaming site, rose after announcing the acquisition of Dumarca Holdings Ltd – founder of Vera&John group, another online gambling / gaming company.
On the day of the announcement, share price of Intertain Group rose by 3.1% percent to $12 (CAD) at just after 3PM in Toronto.
According to a source at Intertain, the purchase will cost the company $126.1m (US) with an initial €44.5 million euro payment (cash) and €36.5m worth of shares made available. The value of the final payment will depend on milestones relating to the value of EBITDA generated by Vera&John.
CEO of Intertain John Kennedy FitzGerald stated that Vera&John would give the company access to the Nordic market and immediate cash flow. Furthermore, they would also be able to use Vera&John’s software platform, which includes a mobile package, adding flexibility and allowing expansion over the coming years.
In 2013, Vera&John had revenue of €25.9 million, generating €4.6 million of EBITDA. This was an increase of 124% over their reported top line of €11.6 million for 2012. Vera&John generates 75% of its sales in the Nordic region, its strongest market.