iGB North America magazine IGBNA Aug/Sep | Page 59

Business and Finance

Figure 1: Earn-out structures in the iGaming sector
40

PT Turnkey Services

Jackpotjoy

BetBoo

eBet

35

TradeFX

Data Tote

BetChoice

Genelty
30

Bingoport

Earnout period (months)

Vera & John
Mobenga
25

Rational Group

Diwip

EDM

GTS

DoubleDown
20
Big Fish Games

Cashcade
15

Virtue Fushion

Costa Bingo

Daub (Wink Bingo)
Dragonplay

Oranje & Kroon
Betsafe

10
MarMar Media
NordicBet
5

0
0%

10%

20%

30%

Note: Bubble sizes represent max deal value
Source: Akur Capital

In our industry, earn-out structures have
been employed in the majority of M&A
deals where the target is a private (usually
owner-managed) company, but its use varies
widely. In practice, the larger the deferred
consideration element, the less “acquired” the
business really is, as managerial control will
to a significant degree remain with the sold
company to allow shareholders to “earn” their
deferred consideration, unencumbered by
their new parent company.
Some real world examples of the wide range
o