GVC Holdings PLC (LON: GVC), the multinational sports betting and gaming group, today announced the acquisition of Neds International for an initial AUS$68m (c£37m), with a total maximum consideration of up to AUS$95m (c£52m).
Neds International is a relatively new entrant into the Australian digital sports betting market, having launched in 2017. Through a combination of effective marketing, proprietary technology and an experienced management team, the business has grown rapidly and is expected to achieve AUS$c1bn of wagers and GGR of AUS$c100m in the year to 31 December 2018.
Australia is a core market for the Group and one that continues to grow strongly. Scale is increasingly important and the combined businesses will become a top three player and the deal represents a key development in our ambition to be a market leader in Australia. In addition to scale, Neds’ proprietary technology complements and enhances the Group’s existing operations in Australia. Anticipated synergies from combining the respective operations are AUS$c16m on an annualised basis and fully realised in 2021. The acquisition is expected to be earnings accretive from 2020.
Kenneth Alexander (GVC, CEO) said: “Australia is a core market for the Group and today’s acquisition further strengthens our position. Neds is an exciting business, with talented people and enables us to further grow market share through two differentiated brands.”
Dean Shannon (Executive Chair of Neds) said: “GVC is a natural fit for the Neds business, we share the same entrepreneurial ideals, whilst delivering market leading products and service to our customers.”
Jason Scott (Australian CEO of Ladbrokes) said: “I am thrilled to lead the Ladbrokes and Neds businesses. The transaction proves beyond all doubt that GVC is here to stay in the Australian market.”
