EveryMatrix Group has decided to sell its Jetbull brand, bringing an end to their Business to Customer operation. EveryMatrix, the London-based software provider will now concentrate on their white label sites, as well as the software solutions that they offer to various betting businesses. The deal to sell to AMGO, a Swedish betting operator, will earn them about £1.8 million.
AMGO will take full ownership of the Jetbull business from the first of July, with work to make the transfer from one company to the other having already started. The deal will see AMGO pay around £1 million in cash and then issue close to ten million newly-issued shares. They will also take ownership of Jetbull’s 600,000 or so registered customers, with operation continuing under EveryMatrix’s Maltese and Danish licences.
Why the Decision to Sell
Jetbull has been reasonably successful for EveryMatrix, so the obvious question is why the company has decided to sell it. The decision was summed up by Ebbe Groes, the company’s Chief Executive Officer, who pointed out that the existence of Jetbull in the EveryMatrix stable meant that they were actually directly competing with the clients that use EveryMatrix for their Business to Business service. Groes said,
Some B2B companies have their own B2C brands competing with their B2B clients. This has always been against our strategy, and with this transaction, we now completely shut down own brands and we can focus exclusively on our role as a software service supplier for casino, sports, payments, and platform. To sell our own brand Jetbull to AMGO is an important step for us to continue developing the market’s most competitive online gaming platform and no longer focus on being an operator.
In other words, EveryMatrix think that they’ll be more appealing to business to business clients if they don’t have their own brand competing against them in the market. Not only does the move make sense from a working point of view, but in making the statement Groes has also put pressure on other white label providers that have their own sports betting site or online casinos to reconsider their position.
Why the Move Makes Sense for AMGO
Swedish operator, AMGO, has worked hard to grow its business operation through a series of acquisitions, with most of them having been completed since October 2018. The likes of Fibetco Gaming Group, 1Click Games and Ekstra Bladet Casino have all been brought under the AMGO umbrella over the past six months or so. Adding Jetbull to the mix serves to further strengthen their position in the market.
The Chief Executive Officer of AMGO, Nicolas Fleiderman, joined the business in February after serving as the Commercial Director for EveryMatrix, so will have known about the company’s desire to sell the Jetbull brand. He spoke of the ‘synergies’ that can be achieved, with AMGO looking to ‘accelerate the growth’ of the online site, as well as looking to make it ‘more efficient’.
AMGO’s focus will now shift to Jetbull as the company continues its drive to recruit the best professionals that it can. Viorel Stan, the Jetbull Chief Executive Officer, echoed these thoughts, saying that there is ‘great chemistry’ between AMGO and the brand. He said, “We will do our best to secure a successful transition. This transition will ease Jetbull’s goal of becoming a top player in all regulated markets.”
EveryMatrix Will Continue Its B2B Services
The deal for EveryMatrix is something of a win-win, given that it will ‘continue as the main technology provider’ for Jetbull, according to Stan. It’s likely that Jetbull will benefit from this deal, with EveryMatrix ensuring that the brand will be ‘supported with the newest innovations to keep the brand at the forefront of the industry’. It’s what EveryMatrix are able to do given that they’ll continue their Business to Business operations.
The move to shut down the Business to Customer side of the company will allow EveryMatrix to concentrate on their very successful Business to Business operation. The white label provider will now be able to work harder to bring in customers that require its services, continuing to offer full-service solutions for those wishing to open online casinos, sportsbooks and other websites that are then customer facing.
What It Means for AMGO
AMGO are purchasing a strong online business which has been in operation since 2007. It was one of EveryMatrix’s first online casino platforms, gradually building up a base of more than half a million registered players. That made it the company’s largest platform, boasting more than 2,000 slots across 40 different providers. The casino allows for a number of different payment methods and currencies.
Licences from the Malta Gaming Authority, the Spillemyndigheden in Denmark and the United Kingdom Gambling Commission mean that Jetbull has a wide customer base that AMGO can aim to exploit, given that the site will continue to operate under those licences. It’s a move that benefits both companies, with Groes saying that AMGO has ‘the right setup’ to push Jetbull on to the next level.
The move coming off the back of similar such acquisitions by AMGO suggests that the company is now ready to begin pushing into numerous different markets. The British betting market is worth billions, so Jetbull giving the Swedish operator access to that certainly won’t be seen as a bad thing by all concerned. It will be interesting to see what moves the company decides to make after the acquisition is complete.