4th Sep 2013 06:51
LONDON (Alliance News) - Ladbrokes Plc (LAD.L) said it would acquire Gaming Investments Pty Ltd or "GIPL", an online sports betting business in Australia. GIPL's business includes Bookmaker.com.au Pty Ltd. or "BPL", operator of the online bookmaker Bookmaker.com.au and Panda Gaming Pty Ltd. or "PGPL", operator of an extensive racing and sports focused affiliate network in Australia.
The transaction, which may close this week, would see Ladbrokes buy 100% of GIPL under its newly formed Australian arm 'Ladbrokes Australia' for an initial consideration of A$22.5 million, around 13 million pounds plus an earnout payable at the end of 3 years that is based on the EBITDA for Ladbrokes Australia for the year to June 30, 2016.
The company added that the acquired assets include an extensive network of racing and sports betting affiliate sites in Australia, which has helped drive efficient cost per acquisition. Ladbrokes Australia, which would be overseen by Damian Cope, Ladbrokes International and Group Strategy Director, who reports to Chief Executive Richard Glynn, is expected to make a small profit in 2014.
Further, there is an earn out payable in cash at the end of 3 years which is based on Ladbrokes Australia's EBITDA for the 12 month period July 1, 2015 to June 30, 2016.
Copyright RTT News/dpa-AFX
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