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Paddy Power has begun its expansion into the Australian gaming market with its acquisition of a major stake in one of Australia's largest corporate bookmakers.
The company invested €27.2 million in a 51 per cent stake in Sportsbet as part of development strategy to expand into international markets. The acquisition, if approved by regulatory authorities, will be completed at the beginning of July.
Sportsbet has been in operation for 15 years, and its business covers online and phone betting on racing and sports for Australian customers. The firm also has a 19.98 per cent stake in rival International All Sports Limited. Under the new deal, current chief executive of Sportsbet Matthew Tripp will stay on, with Paddy Power appointing four directors to the board, including Patrick Kennedy and Breon Corcoran.
Paddy Power's chief executive Patrick Kennedy said Sportsbet was "an excellent fit" with the company. "Sportsbet has a strong, well run business together with plenty of potential to build on its market position in Australia," he said. "The acquisition adds a new dimension to our business portfolio to which we can bring trading, risk management and marketing expertise honed in Ireland and the UK to complement Sportsbet's existing skills and experience."
Source: The Irish Times
