Betsson will pay an initial $25.0m (£18.0m/€21.3m) to acquire Inkabet.
In addition to the initial payment, there are also contingent payments based on Inkabet’s performance.
If Inkabet reaches agreed revenue and earnings targets in the six months after the deal closes, an additional €4.0m will be due.
There is also a deferred payment of €5.0m, with €3.0m payable on 31 December 2022 and €2.0m on the same day in 2023, if no claims have arisen.
Betsson views Latin America as a strategically important region and this acquisition will strengthen its presence there.
Inkabet, launched in 2012 and focused on the western region of South America, reported $25.5m in revenue and €8.8m in EBIT for the 12 months to 30 June this year.
Betsson’s CEO, Pontus Lindwall, stated that this transaction will help the company build market share in the LatAm region and aligns with its ambitions for the future.
The deal is expected to be completed 30 days after signing and will be financed through Betsson’s revolving credit facility.
Certain restructuring activities are also required for the deal to close.
Last month, Betsson highlighted the growth of its sports betting business in Latin America as a key factor behind its record profit of SEK337.9m in the second quarter.
During Q2, Betsson expanded its presence in Latin America by partnering with local operator Big Bola Casinos to launch in Mexico.
