Ladbrokes acquires Aus sports betting company for £13m
UK bookmaker takes first steps into Australian market with purchase of Gaming Investments, owner of Bookmaker.com.au
Ladbrokes has announced the acquisition of Australian sports betting operator Gaming Investments (GIPL) for AUS$22.5m (£13m), marking the UK operator’s first steps into the Australian market.
The acquisition, which will see the formation of Ladbrokes Australia, is expected to complete by the end of the week and will extend the sportsbook’s global reach.
Ladbrokes will acquire GIPL for the initial consideration, with an additional earn out payable in cash based upon Ladbrokes Australia’s EBITDA for the period 1 July 2015 to 30 June 2016. As a result, the company is expected to incur a small exceptional charge this financial year.
“The acquisition of this fast growing business represents an excellent opportunity for Ladbrokes to establish a strong presence in Australia, in line with our strategy to extend geographic reach to key regulated markets,” Ladbrokes’ CEO Richard Glynn said.
“At launch Ladbrokes Australia will have a highly experienced management team who are strongly incentivised to achieve further customer and revenue growth over the coming years,” he added.
Ladbrokes Australia will be managed by the company’s international and group strategy director Damian Cope, while GIPL will continue to be overseen in Brisbane by founder and CEO Dean Shannon.
Ladbrokes will be the primary business brand, however existing brands will continue “where appropriate”.
A new website, Ladbrokes.com.au, launched today and an active marketing campaign focusing on the Spring Racing Carnival “ a 65-day racing programme in the Australian state of Victoria “ will soon start in the country promoting the launch.
GIPL includes the online operator Bookmaker.com.au, which launched in February 2012 before achieving circa A$400m in amounts staked in the year ending 30 June 2013.
The acquisition also includes ownership of the operators’s independently developed betting software, which comes tailored for the Australian market with an integrated affiliate platform and mobile apps.
Ladbrokes will also take on Panda Gaming, GIPL’s affiliate arm which focuses on Australian racing and sports betting. Ladbrokes expects the affiliate side to drive down cost per acquisition in the country, a problem cited by William Hill following their move into Australia with last month’s acquisition of Tom Waterhouse.
The operator’s move into Australia comes just weeks after it announced intended drives into Latin markets including Spain and Mexico. Ladbrokes’ Spanish-facing company Sportium is due to launch online in H2 2013, with moves into Mexico planned for early next year.
Ladbrokes announced the deal two days after it was revealed the company was to enter in its second round of redundancies in four months, with 75 head office staff due to enter consultation this week.