Ladbrokes has grown its business in Australia by buying Betstar, a private bookmaker, in a deal worth £12.4m deal.
It secures one of the last remaining private bookmakers and allows Ladbrokes to add an existing and complementary client base and accelerate the growth of its Australian business.
Betstar has approximately 40,000 registered customers and, in the year to 31 March 2014, it generated gross win of c.A$12.9m on A$214m amounts staked.
Annualised cost synergies of approximately $5m will be realised from the migration of Betstar’s operations to Ladbrokes’ digital platform and the acquisition is expected to be earnings accretive(2) in its first year under Ladbrokes ownership. The Betstar brand will be maintained.
The acquisition builds on the presence in the Australian market following last year’s acquisition of Bookmaker.com.au and the creation of Ladbrokes.com.au.
Ladbrokes MD International, Damian Cope said: “Australia represents one of the most vibrant regulated sports betting markets in the world and today’s announcement will see us add new customers to our growing presence. It offers us a chance to improve our market share and bring the innovative product development and marketing skills displayed by Ladbrokes.com.au to a wider audience.”