Allwyn Seizes 51% Stake in Novibet to Expand iGaming Reach

Allwyn International has taken a significant step in expanding its iGaming footprint globally through the acquisition of a 51% majority stake in Logflex MT Holding Limited, the operator of the well-known online gaming brand Novibet. The acquisition was disclosed on December 30, 2024, involving an initial cash payment worth €217 million, with supplementary performance-based earnouts that could reach up to €110 million. This strategic move is an integral part of Allwyn's overarching goal to fortify its position within the international online betting and gaming sectors. The acquisition aims to bolster Allwyn's technological and operational capacities in the online gambling domain. Novibet, having established a firm presence in regulated markets such as Greece, Brazil, Cyprus, Ireland, and Mexico, employs over 1,000 professionals, with teams distributed across Malta, Greece, and Brazil. This acquisition targets not only strengthened technological expertise but also a more substantial foothold in the European and South American markets. An Allwyn spokesperson elaborated on the strategic ambitions, stating, “Allwyn’s acquisition of Novibet enhances the group’s technological capabilities, as well as strengthening its position in the online sports betting and gaming markets, in line with Allwyn’s strategy of making selective acquisitions in relevant products, technologies, and content to support its growth.” Even amid the change in ownership, Novibet's current management, comprising its founders, will maintain operational control, ensuring the brand's continuity while integrating Allwyn's vast resources.

Strategic Growth and Innovation Boost Through Novibet

The continuation of Novibet's existing management ensures the brand retains its identity, allowing for innovation and expansion within the scope of Allwyn's resources. Robert Chvatal, Group CEO, expressed optimism regarding the acquisition, focusing on its innovation potential and customer experience enhancement. Chvatal noted, “Novibet has demonstrated its ability to expand across multiple markets and innovate, which will strengthen our momentum and enhance our offer to players. The innovation potential of this transaction is substantial as we look to provide our customers with the very best experience in online sports betting and gaming.” Novibet stands as Greece's second-largest online gambling operator, marking significant achievements in regulated domains like Malta, Ireland, and Italy. With the acquisition by Allwyn, Novibet's future expansion plans that target Romania, Hungary, France, and Spain are slated for acceleration. George Athanasopoulos, Novibet's CEO, highlighted the strategic advantage of this acquisition, stating, “Joining Allwyn marks the start of an exciting new chapter for Novibet. This partnership will accelerate our ability to develop proprietary solutions, expand our product offering, and extend our success to a much larger international audience at a faster pace.” Founded in 2010, Novibet has been consistently pursuing growth opportunities. Previously, the company considered an IPO through a SPAC merger with Artemis Investment Corporation in 2023, leveraging a valuation of $700 million, although this deal was not realized. Nonetheless, Allwyn's acquisition marks a decisive advancement aligning with its strategy of deliberate acquisitions, exemplified by its 70% stake purchase in Instant Win Gaming in February 2024, showcasing Allwyn's commitment to broadening its market presence.

Future Prospects and Expected Outcomes

Awaiting the completion of legal and regulatory procedures, the transaction is anticipated to finalize in the latter half of 2025. Meanwhile, both Allwyn and Novibet remain hopeful about the synergetic potentials and collaborative prospects lying ahead. The two companies are optimistic about leveraging their combined strengths to push the boundaries of the global iGaming industry. Of note is how this acquisition not only signifies Allwyn's commitment to boosting its operational and technological edge but also underscores its intent to expand strategically into new territories. Novibet's accumulated expertise across multiple regulated markets is expected to be pivotal for Allwyn in navigating and conquering new regions. The acquisition stands as a testament to Allwyn's sustained ambition to enhance its offerings and extend its market reach strategically. With such focused efforts and growth potential, Allwyn, alongside Novibet, is poised to redefine aspects of player engagement and technological application in the online sports betting and gaming realm. This acquisition, once finalized, could mark a transformative phase in the evolution of both companies, setting new benchmarks for growth and innovation in the dynamic iGaming landscape. Source: "Allwyn acquires 51% stake in Novibet owner", igamingbusiness.com, January 02, 2025. By GamesAndCasino