Ladbrokes expands sports betting services with bolt-on acquisition
High Street betting shop Ladbrokes is to get its hands on the Betdaq exchange business through its acquisition of Global Betting Exchange Alderney (GBEA).
High Street betting shop Ladbrokes is to get its hands on the Betdaq exchange business through its acquisition of Global Betting Exchange Alderney (GBEA).
Ladbrokes is paying TBH Limited €30m on a cash-free/debt-free basis for GBEA and will also exchange €4.0m for a 10% stake in TBH Guernsey (TBHG), the technology provider to GBEA. In addition, it also has a call option to take over TBHG after four years.
The group said that the transaction combines Ladbrokes' global brand and improved sportsbook with a "high quality, scalable betting exchange to create the most comprehensive sports betting service in the market".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Meanwhile, it accelerates the firm's strategy to grow digital revenues through technology investment.
"The Betdaq exchange is a well-regarded and well invested business and a close strategic fit for Ladbrokes," said Chief Executive Richard Glynn.
"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 firm said that the transaction would be earnings accretive this year.
Shares were up 2.51% at 204.4p in early trading on Thursday.
BC
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Ben Cohen: The Ben & Jerry’s co-founder who wants to break away from Unilever
Ben Cohen of Ben & Jerry’s ice cream is seeking to break away from Unilever, the conglomerate he sold out to in 2000. It’s a battle for the soul of the brand synonymous with corporate do-gooding.
By Jane Lewis
-
Trump wants to colonise Mars – will it happen?
Donald Trump wants to plant the US flag on Mars. Could humans really live there?
By Simon Wilson