Paddy Power to purchase 51% of Aussie Sportsbet

Paddy Power have agreed to purchase 51% of Australian sportsbook Sportsbet, the deal will make Paddy Power the majority shareholder at an initial cost of €27.2 million. Paddy Power has also secured a call option to purchase outstanding shares in Sportsbet which could be exercised in 2012/2013. The first stage of a purchase is yet to be approved by the regulatory authorities, but if the all clear is given to go ahead it is expected to be effected by the beginning of July.

Paddy Power are to hand over 100,000 of their own shares to Sportsbet shareholders in the deal and have the right, under the terms of the agreement to claw back further equity from the shareholders of Sportsbet if expected profitability targets are not met in the next three years of trading.

The deal is part of Paddy Power’s plan for strategic growth into International markets, and will see them gaining a foothold in the Australian betting market at a time when the UK and Irish sports betting markets have reached almost saturation point.

Paddy Power is the largest and most profitable bookmaker in Ireland and has in excess of 250 betting shops in the UK and Ireland and also operates a very successful online gaming operation which includes not only sports betting but also poker, casino, gaming, trading and bingo. Paddy Power has gained a reputation of being the bookmaker with a sense of humour and offers sometimes bets on markets that are verging on the ridiculous. This often cheeky sense of humour added to exceptional offers, promotions and outstanding customer service has helped to earn the Paddy Power sportbook and gaming empire a place in the general public’s heart.

Sportsbet themselves are a long established sportsbook located in the Northern Territory of Australia, the firm has been trading for the last fifteen years and owns a 20% share in Darwin based All Sports Limited. Paddy Power sees the Sportsbet acquisition as an ‘excellent fit’ for their company.