Allwyn is set to acquire a 36.75% stake in Kaizen Gaming for its business activities outside Greece and Cyprus after reaching an agreement with OPAP Investment.
The transaction will cost Allwyn an upfront fee of €50m, in addition to performanced based earned payments which will be paid in 2023, 2024 and 2025 to Greek lottery operator OPAP SA, the holding company of its wholly-owned subsidiary.
According to both Allwyn and OPAP, the purchase price “corresponds to the fair market value of OPAP Investments 36.75% interest in the Betano Business as evaluated by an independent financial adviser”.
The Betano Business has been accounted for under the equity method and contributed EBITDA losses of €400,000 in OPAP’s FY2021 financial results.
OPAP has highlighted the company’s commitment to strengthening its position in the Greek and Cypriot online gaming markets as a driving factor behind the sale.
Meanwhile, Allwyn maintains the transaction reflects its “international growth strategy”, strengthened this year as it completed its public-listing on the New York Stock Exchange in partnership with Cohn Robbins Holding Corp.
Allwyn is a major shareholder in the Greek operator OPAP and, in February, its board confirmed it had increased its interest stake from 41.2% to 48.1%.
The Czech-based firm has also recently made headlines in the lottery sector after being named by the UK Gambling Commission (UKGC) as preferred candidate of the fourth National Lottery licence last month.
