AUSSIE ONLINE ACTION FOR UNIBET
10 February 2012
Deal with Betchoice opens the door to
Australian markets
The European online betting group Unibet plc has
signed an agreement to acquire 100 percent of Betchoice
Corporation Pty Ltd, one of Australia's foremost
independent corporate internet bookmakers.
Betchoice operates a range of sports and racing betting
products in the Australian market through its web site
Betchoice.com, and represents Unibet's second move into
a regulated market.
A Unibet spokesman said that
the acquisition gives the group access to the
fast-growing Australian online market, and represents a
solid platform from which to invest further and gain
market share. It also positioned Unibet favourably for
the anticipated opening of live betting products in
Australia at some point in the future, and provides
Unibet with horse racing capability which can be
leveraged further across the group, he said.
The
initial acquisition price is A$ 20.0 million (GBP 13.6
million), on a cash free and debt free basis, payable in
cash on closing. In addition, there is an earn-out for
Mark Morrissey, founder, chairman and 38 percent
shareholder based on 5.5x 2014 EBITDA in Australia less
the initial acquisition price.
Morrisey will
remain with the business post completion. A further AUD
2.4 million in aggregate will be payable to certain
other shareholders, if 2014 EBITDA in Australia exceeds
A$ 4.4 million.
Completion of the transaction is
subject to approval by the Northern Territory Racing
Commission and is expected to take place before the end
of the second quarter of 2012.
The acquisition
will involve extensive rebranding, changing the
Betchoice identity to that of Unibet after a short
transition period. Unibet plans to invest significantly
in the Aussie market over the next two years, improving
its Australian product portfolio and marketing to
strongly establish the Unibet brand.
Applying
the wider sports product range and risk management
techniques within Kambi, Unibet's B2B Sportsbook
division, to Betchoice will improve Betchoice's offering
and financial performance, the spokesman claimed. Kambi
will also benefit from integrating Betchoice's racing
product within its portfolio.
Betchoice currently
employs around 35 people in Australia, all of whom will
be integrated into the Unibet team. Betchoice operates
under a Northern Territory sports bookmaking licence and
has offices in Darwin and Sydney.
"Betchoice
already has a strong offering and market position in
horse racing and through Kambi, Unibet has the
opportunity to enhance the quality and performance of
Betchoice's sports betting offering and so to deliver
revenue growth and margin improvements,"¯ Henrik
Tjärnström, CEO Unibet, said this week.
"The
acquisition of Betchoice will provide Unibet with a
platform to facilitate other gambling services and
opportunities should market conditions continue to
improve."¯
Online Casino News Courtesy of
Infopowa
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