Interactive betting and gaming company Leisure & Gaming PLC said it has agreed to acquire BetShop Group (BSG) for a total consideration of up to 32.06 mln stg.
Leisure & Gaming said it will initially pay up to 12.69 mln stg in a mixture of cash and shares. The full additional consideration of 19.37 mln stg is payable subject to the business achieving its maximum earnings before interest and tax targets for the years ending December 31, 2006, 2007 and 2008 of 2.65 mln stg, 5.2 mln stg and 7.25 mln stg respectively.
Alistair Assheton, chief executive of Leisure & Gaming said: 'Through the acquisition of BSG we substantially strengthen our European offering and further diversify our global revenues, in line with our stated strategy.'
He added the acquisition, which is expected to complete on June 23, will enhance earnings in its first full year.
In the year ended June 30, 2005 BSG recorded revenues of about 74.54 mln stg and earnings before interest and tax about about 850,000 stg.
source : AFX Financial News
