As part of the purchase, Betsson is to pay an initial €32.5 million in cash and shares and a subsequent €27.5 million payable based on ‘the development of the acquisition and the integration thereof during 2011’, according to a statement released by the company.

Betsafe is a private gaming company which offers sports betting, casino and poker to customers primarily in the Nordic region.

Chief executive of Betsson, Pontus Lindwall, says that the deal will help fuel growth for Betsson as well as creating synergies such as integration of platforms and supplier contracts.

Lindwall adds: ‘ We strengthen our position in the Nordic region as well as our organisation when merging two profitable companies, each of which has proven its ability to gain market share in a highly competitive market.’

Both businesses hold operating licenses in Malta and sit on the Ongame poker network.

Under the terms of the acquisition Betsson is to retain all Betsafe staff and brands. The existing management team at Betsafe, which includes founders Andre and Christer Lavold and chief executive Henrik Persson, will join the Betsson operational management team in Malta.

The gambling deal follows the recent acquisition by British bookmakers William Hill of an American-based betting business.

Prior to that William Hill made an additional two purchases of US targets in its acquisition drive.

Persson says that the deal is an attractive outcome for Betsafe because of the similar business visions that the two companies share.

He adds: ‘Two strong cultures, with common values and goals, now join forces with the aim to further develop the business.’

Betsafe declared revenues for the year ending 30 April 2011 of €33.4 million.