Ladbrokes buys Betdaq for £30m
Betting and gaming company Ladbrokes said today it has agreed to buy Global Betting Exchange Alderney Ltd (GBEA), the operator of the Betdaq exchange business, for an initial consideration of €30m on a cash free/debt free basis from TBH Ltd.
Ladbrokes said it has also agreed to buy from TBH a 10pc stake in TBH Guernsey Ltd, the technology provider to GBEA, for €4m, with a call option to acquire the remaining shares in TBHG after four years.
The transaction is subject to certain conditions and is expected to complete in late February 2013.
“The Betdaq exchange is a well-regarded and well invested business and a close strategic fit for Ladbrokes,” said Richard Glynn, Ladbrokes’ chief executive. “Whilst the main focus of our digital growth strategy continues to progress well, this bolt-on acquisition provides us with an exciting opportunity to grow our share of wallet through the creation of a differentiated and comprehensive sports betting proposition for customers and also supports our drive for improved liability management.”
The initial consideration for GBEA is €30m, with €15m of the consideration to be settled in Ladbrokes shares. GBEA generated profit after tax of €2.8m in the year ending 31 December 2012 on a pro forma basis and had gross assets of €35.4m.
In addition Ladbrokes will pay an earnout based upon the growth in GBEA’s adjusted gross profits between the financial year ended 31 December 2012 and the financial year ended 31 December 2016.
As regards TBHG, Ladbrokes has an option to sell back its 10pc interest for €4m, if the call option is not exercised.
The total consideration for the acquisition of GBEA is capped and, as such, the transaction will not require shareholder approval.