Betsson AB (OM:BETS B) agreed to acquire RaceBets International Gaming Ltd from Bettertainment GmbH, German Thoroughbred Racing Association and founders for €40 million on December 7, 2016. Under the terms of the agreement, initial acquisition consideration for the business is €34 million, payable in cash. Subject to achieving certain financial and non-financial milestones, a remaining purchase consideration amounting to €6 million may be paid. Betsson may also pay for additional cash. The acquisition multiple is 10.1x 2015 EBIT. The cooperation with German racing will continue. The horse betting product will be added to Betsson’s offering and will benefit all Betsson brands. The accounting revenue of RaceBets in 2015 was €9.3 million and adjusted EBIT was €3.36 million. The deal is subject to the satisfaction of relevant regulatory approvals. Closing of the deal is expected in the beginning of 2017. Restructuring effects of the acquired entity is estimated to have a temporary negative impact on revenue and EBIT of up to €0.75 million in 2017. Ralph Hagelgans and Frederik Schreurs of Livingstone Partners acted as financial advisor while Stefan Widder and Otto von Gruben of Latham & Watkins Schön Nolte acted as legal advisor to Bettertainment GmbH.