Sporting Index sale given regulatory go ahead
Spread betting firm now in hands of private investor Magnus Hedman following authorisation from the Financial Conduct Authority
Swedish gaming entrepreneur Magnus Hedman has completed the £40m acquisition of spread betting firm Sporting Index and its B2B subsidiary Sporting Solutions from private equity firm HgCapital.
The deal, first announced in March, has received regulatory approval from the UK Financial Conduct Authority and completes Hedman’s second major acquisition in the space of nine months.
The acquisition was backed by Investec Growth & Acquisition Finance which provided financial assistance through a mix of senior and mezzanine debt, and now a significant stake in the firm.
“This is a really exciting time for the Sporting Index Group, its staff and its customers,” Warren Murphy, chief executive of Sporting Index Group, said.
“Our new owners are an excellent fit for our business. They share our vision for the future and have the necessary resources and expertise to help drive the future growth of both Sporting Index and Sporting Solutions,” he added.
eGaming Review understands Hedman fended off competition from GVC Holdings and Betgenius to secure the acquisition of Sporting Index, which will continue to be led by chief executive Warren Murphy and the rest of the current management team.
The tycoon, who already owned Malta-based risk management and pricing supplier firm Touchbet, was recently revealed as the purchaser of Asia-focused sportsbook Pinnacle Sports in a deal thought to be worth around £160m.
It is not yet known how Hedman plans to marry the three firms although it is thought Pinnacle may use Sporting Index’s UK licence to assist its return to the UK market after it withdrew due to the onset of the Point of Consumption licensing regime.
London-based Sporting Index was founded in 1992 and last year won the award for Spread Betting Product of the Year at the eGaming Review Operator Awards.
The firm formed its B2B arm Sporting Solutions in 2007 and provides data and trading tools to the online sports betting sector, with a focus on in-play betting.
HG Capital acquired Sporting Index in 2005 from Duke Street Capital for a total cash consideration of £75.8 million.