BUSINESS

Paddy Power increases stake in Aussie bookie

TAGs: Australia, Paddy Power, Sportsbet

sportsbet-acquired-by-paddy-powerIf there’s one country that could challenge Australia in the drinking stakes then it will be the Irish and in the latest gambling industry news it looks as though Ireland’s company of the century are going to put it to the test.

Paddy Power have continued to act as if they have no connection to Ireland apart from their roots being in the country, as they’ve decided time is ripe to splash the cash. Already owning over 60% of Australia’s largest bookmaker, Sportsbet, wasn’t enough and today marked the day that Paddy donned a cork hat and brought the Leprechaun for a short break to the land formerly occupied by convicts.

Paddy acquired the remaining 39.2% for an initial AUD132.6 million (€100.9 million), which is subject to an extra payment of a maximum AUD25 million if Sportsbet’s EBITDA exceeds AUD80million.

Patrick Kennedy (is everyone at Paddy Power called Patrick I wonder?), Paddy Power chief executive, happy that the deal had gone through commented: “When we acquired 51% of Sportsbet in 2009 we were confident that we were investing in a business with strong potential in a growing market. That confidence has been borne out and some. It’s a cracking business. The team has made great strides in marrying the best of both Sportsbet and Paddy Power. This is a good deal to acquire the remaining shares early which will allow us to drive development and investment and secure full participation in the upside of the business.”

After acquiring the remainder of Sportsbet it will be full steam ahead into the new year and in terms of their home territory of Ireland there’s an exciting year ahead with the gambling laws being updated as well as seeing how the economy turns out…oh, and Calvin’s 50th!

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