GVC Agrees a Deal to Sell Headlong
According to FTSE 250 firm, Ropso Malta Limited is a company that currently supplies the fundamental IT services to Headlong for a performance-related earn-out compensation of up to €150 million to be paid out in cash, on a monthly basis, over a five-year-long term.
Ropso Malta to Acquire Headlong
The deal is subject to lender approval and gaming regulatory, yet, the company expects the finalization to take place by the end of this year.
GVC and Ropso Malta have reached an agreement that, after the completion of the whole transaction, transitional service arrangements are to be concluded for no longer than a six-month period.
Headlong and the associated firms have produced nearly €35 million of clean EBITDA, while management is expecting another group clean EBITDA sum from the corresponding operations for the fiscal year to the end of December, 2017.
The gross assets of Headlong and the other associated companies amounted to €21 million as at the end of December, 2016.
Decision Against a Backdrop
GVC said that the decision about selling Headlong and the associated companies was reached against a backdrop where, in a progressively developing and regulating online casino world, the board inferred that it is now an opportune moment for GVC Holdings to further concentrate its efforts on regulated markets.
GVC predicts that the regulated and locally taxed amount of the group NGR would be raised to roughly 75% after finalization of the sale.
The profit from the sale would be utilized for general corporate projects and the board confirmed that the disposal would not affect its developing dividend policy.
Furthermore, the company considers that the disposal will reinforce the attractiveness of the holding company to potential consolidation partners and investors.
GVC stated that the powerful start of the quarter had advanced with daily NGR in October increased by 26% over the equivalent period in 2016, or by 29%, as far as constant exchange rates are concerned.
Chief Executive of GVC, Kenneth Alexander added: “As the group evolves, our focus is increasingly on regulated markets and markets where we believe there is a realistic path to regulation. Today’s disposal is consistent with this strategy and enhances GVC’s position as a leading operator in a rapidly developing industry.”