Online Casino Group BetandWin finalises Ongame acquisition

Austrian online sports betting operator betandwin Interactive Entertainment has finalised its 513 million euro ($611 million) purchase of Swedish online poker site Ongame e-Solutions.

A company statement said, 'All conditions precedent to the acquisition, including approval by the supervisory and management boards of BetandWin, have been satisfied.'

BetandWin is fighting for market share in the booming online gambling market and has agreed to pay 5.37 times Ongame's 2005 gross gaming revenues less customer bonuses. It will pay 60 percent in two cash instalments and 40 percent in stock.

BetandWin raised 269 million euros by selling new shares to fund the first cash installment and has issued a further 3.1 million new shares to pay for the share part of the price.

The new shares issued for the share part of the deal cannot be sold for six months and the lockup expires step by step over the following 18 months.