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Betway operator Super Group has entered into a €140m agreement to take full control of its sportsbook technology from its longstanding tech partner, Apricot.

Super Group said the transaction would bring it closer to its goal of fully owning its sportsbook technology across its worldwide markets.

The company added the deal would give it the capability to apply the technology stack to any properties it chooses to buy or build in future.

Super Group CEO Neal Menashe said: “I’m delighted that we have now concluded terms for the sportsbook – we have been working closely to agree to an equitable deal with a favourable structure for both parties.

“This is an exceptional opportunity for Super Group to take full control of our sportsbook technology, which would enable maximum flexibility for organic growth as well as potential M&A opportunities.

“We’ll continue to deliver the best sports betting and gaming experience to our customers around the world as the benefits of this deal are realised.”

M&A floated as benefit of in-house tech stack

The company’s African business, often considered one of Betway’s strengths, was highlighted as an area for which having an in-house tech stack available would be a significant benefit.  

The deal’s closing is conditional on licensing from relevant gambling regulators, said the business, with approvals predicted to take between six and 12 months.

In the business’ Q1 earnings call, Menashe said the acquisition of the technology would also play a role in the ongoing review of the business’ US operations.

Alongside the €140m deal’s total consideration, Super Group said it could pay an additional amount for the tech if certain earn-out conditions are achieved.

These additional payments could rise to a maximum of €210m if Super Group’s revenue more than doubles through an earn-out period that runs to 31 December, 2035.

The earn-out is calculated as a percentage of monthly sportsbook net gaming revenue, ranging from low to high single digit percentages.

Super Group highlighted the cost efficiency gains of the deal, with two previously separate teams working together in future.

Menashe added: “We are excited to put this deal to bed and we’ll be working closely with our dedicated Apricot team to further integrate the technology into our business.”

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