The initial buyout price is pegged at €5.625 million, on top of the €1.5 million net cash adjustment commitment. The initial acquisition price components are supposed to be paid upfront in cash upon the closing of the buyout agreement. The agreement will also require Unibet to deliver the funds needed to settle the existing liabilities of Solfive amounting to €2.375 million. Depending on the results on the trading floor in the next 6 months from the closing of the buyout agreement, an earn-out may be allocated in favor of Solfive.

The Solfive acquisition by Unibet is awaiting approval by the ARJEL, and the entire process is expected to be completed before the end of the year.

Unibet explains that it is poised to undertake immediate “makeover” of the platform and shift from Eurosportbet.fr to the new but familiar Unibet.fr. This rollout is expected to be completed after the company completes the necessary rebranding and other transitional activities which are expected to hitch on Unibet’s proud legacy and strength and broad customer base. Changes which are expected to be instituted immediately upon closing of the buyout deal shall be consistent with relevant provisions and guidelines by the French licensing system. And while this transaction is expected to push the revenues of Unibet, its impact on the company’s margin for 2012 is not expected to be significant.

Unibet CEO Henrik Tjärnström explains that this strategic move by the company serves as their fast-access route to the lucrative French market using a technical gambling and betting platform that is licensed to offer horse racing, poker and sports betting. “The synergy between the strong Unibet brand and market presence of EurosportBet would ultimately contribute to the strategic objectives of the company,” says Tjärnström.  “Our main priority right now, is to control the cost of our operations in order to maintain the viability of the core business amid difficult conditions in the French market,” Tjärnström adds.

Posted on: November 21, 2011

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