UK betting group Ladbrokes acquires Ireland’s Betdaq

Grayhound racing

UK online betting and gaming company Ladbrokes Plc (LON:LAD) said today it had sealed a deal to buy the operator of the Irish Betdaq betting exchange business from TBH Limited for an initial sum of EUR30m (USD40m) on a cash-and-debt-free basis.

Under the terms of the deal, Ladbrokes would acquire Global Betting Exchange Alderney Limited (GBEA) for the initial consideration, including EUR15m in stock, and a potential performance-based earn-out.

Furthermore, the company would purchase a 10% stake in TBH Guernsey Limited (TBHG), the technology provider to GBEA, from the same vendor for EUR4m. Ladbrokes would also get a call option to take the remaining 90% of that entity once TBHG’s results for 2016 have been finalised, or to sell back the interest for the same price.

With this acquisition, Ladbrokes steps up its strategy to grow digital revenues via investment in proprietary technology. Following the purchase, the company would be able to address the full spectrum of the wider sports betting market and access a larger share of existing and future client’s betting expenditure, it said.

The transaction needs to receive the relevant regulatory nods and is seen to close late next month. Ladbrokes expects it to be accretive to earnings in 2013.

In 2012, GBEA recorded a pro-forma after-tax profit of EUR2.8m and had gross assets of EUR35.4m

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