Story updated with Novibet response on 5 March
Allwyn International has withdrawn from its acquisition of Novibet following feedback from the Hellenic Competition Commission (HCC).
Allwyn stated on Wednesday that while both itself and Logflex MT Holding Limited, the owner of Novibet, had presented the HCC with “carefully considered proposals”, the companies no longer expected the transaction to proceed.
This was “in light of feedback received from the HCC”, with Allwyn outlining its commitment to only pursuing transactions that delivered value to shareholders.
iGB understands that after a long review of the transaction from the HCC on the competition effects of the transaction, the numerous remedies considered and discussed would have failed to maintain the value of the transaction.
As a result, Allwyn and Logflex made a joint decision to withdraw the deal from review.
H2 Gambling Capital estimates Novibet sits second in the Greek licensed online sports betting market, holding a share of roughly 19%-20%.
Novibet issues response highlighting growth strategy
Novibet issued its response on Thursday, confirming it was a joint decision between the two parties with the main objective of “creating and safeguarding the maximum possible value” for shareholders and investors.
It highlighted its growth momentum, with Novibet expected to outperform market growth across all of its current markets.
“Novibet continues to execute its strategic and investment plan with consistency, leveraging cutting-edge technology and its privately owned platform as key competitive advantages,” the press release outlined.
“Guided by innovation and technological excellence, the company is accelerating its international expansion and further strengthening its position as one of the most dynamic GameTech organisations with a strong global outlook.”
Background on the deal
On 30 December 2024, Allwyn announced it had agreed to acquire a 51% majority stake in Novibet’s owner Logflex MT Holding Limited.
The deal included an initial up-front cash payment of €217 million ($252.5 million), with an additional €110 million in potential future earnouts depending on Novibet’s performance.
The deal had been expected to close in H2 2025, with Allwyn CEO Robert Chvatal stating it would strengthen the group’s momentum.
“The innovation potential of this transaction is substantial as we look to give our customers access to the very best experience in online sports betting and gaming,” Chvatal said at the time of the deal’s announcement. “Novibet has a world-class team and we look forward to capitalising on the international opportunities ahead.”
For now, though, it appears the deal is off, 15 months after it was initially announced.
iGB understands any future deal would be vastly different in terms from what was previously agreed.
Original article: https://igamingbusiness.com/strategy/ma/allwyn-withdraws-novibet-acquisition-hellenic-competition-commission/
