Betting company Betsson has confirmed that it has reached a settlement agreement with the former owners of Nordic Gaming Group (NGG) with regard to a disputed earn-out payment for the online gaming business it acquired in 2012.
The original deal stated that Betsson set a maximum additional purchase price of €20 million ($23.9 million) as part of the acquisition of NGG, based on its performance in 2012.
Under the new agreement, Betsson will now pay €15.5 million with no additional requirements for transfers of interest of earn-out from Betsson.
The updated deal will see Betsson have a cash flow of negative SEK147.1 million, but also a positive profit impact amounting to around SEK 40 million in the fourth quarter of 2014.
Betsson’s dividend policy states that 75% of earnings is transferred each year to shareholders through an automatic redemption process.
Betsson added that the positive profit effect will not be included in calculation of net distributions to shareholders.
source : www.igamingbusiness.com
