Mecca Bingo parent Rank Group Plc (LON:RNK) has agreed to acquire QSB Gaming Limited which owns YoBingo.es, a Spanish language digital bingo business.
It is paying an initial €21mln, potentially rising to €52mln depending on future performance.
YoBingo has 30% of Spain’s digital bingo market and it is expected to accelerate the multi-channel growth of Rank’s existing Spanish brand, Enracha.
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The company highlighted that by acquiring YoBingo it has secured a proprietary online platform including bingo, roulette and video bingo content for the Spanish market.
“The acquisition of the YoBingo Group expands Rank's digital footprint in Spain,” said John O’Reilly, Rank chief executive.
“Spain is an exciting high-growth regulated market which we believe offers strong multi-channel potential.
“The YoBingo Group is a well-established operation that we intend to further develop and to cross-sell into our established Spanish retail operations."
QSB earned (EBIT) €2.5mln on €10.4mln of revenue in 2017, and Rank described the acquisition as accretive on an earnings per share basis.