The receivables acquired (which principally comprised trade receivables) in the acquisition with a fair value of €21.7 million
had gross contractual amounts of €21.7 million. The best estimate at acquisition date of the contractual cash flows not
expected to be collected were €21.7 million.
Goodwill of €84,221,000 is primarily related to expected future profitability following the restructuring of Sportingbet, growth
expectations from utilising the Sportingbet software platform throughout the group including the provision of services to
B2B partners and expected cost synergies.
In considering the impact of the acquisition of Sportingbet and its contracts with East Pioneer Corporation ("EPC") with
whom the group had pre-existing contracts relating to the Superbahis business, the group re-evaluated its contract with
EPC in accordance with IFRS 3. In so doing it considered the services provided, the risks associated with the provision of
those services and the expected financial reward for their provision and concluded the existing contract remained on terms
no more or less favourable to market conditions than on its outset. Therefore, no gain or loss on settlement is recognised in
profit or loss.
As part of the transaction costs the Group incurred €6,398,000 of legal and professional fees in acquiring the business.
These costs have been excluded from the consideration transferred and have been recognised as an expense in profit or
loss in the current year within 'exceptional items'. See note 4.1 for details.
Contribution to Group results
Sportingbet recorded total revenue of €74.7m and generated a Clean EBITDA of €4.7 million and incurred a loss before tax
of €15.7 million for the period from acquisition to 31 December 2013. If Sportingbet had been acquired on 1 January 2013,
Group revenue for the year would have increased by €27.3 million and it would have contributed an additional loss before
tax of €8.4 million.
11.2 Gomifer S.A.
On 1 October 2013 following the migration of the Betboo business to the Sportingbet trading platform (see note 12), the
Group acquired Gomifer S.A. from the founders of the Betboo business for $1 plus the net asset value of the business at
the date of transfer.
The fair value of net assets acquired are as follows:
Non-current assets Useful economic life
- Property, plant and equipment 3 years 23
- Intangible assets 3 years 11
- Trade and receivables 61
- Cash and cash equivalents 14
- Trade and other payables (58)
Net current assets 17
Net assets acquired 51
11.3 Net Cash Acquired Through Acquisition
The net cash acquired through acquisition is show below:
Sportingbet PLC acquisition 64,792
Gomifer S.A. acquisition 14
Gomifer S.A consideration (51)
GVC HOLDINGS PLC ANNUAL REPORT 2013 47
NOTES TO THE FINANCIAL STATEMENTS