It’s been two years that Paddy Power has been after Sportsbet and it appears they finally have it. The Irish bookmaker first acquired a 51 per cent stake in Sportsbet back in July of 2009 before taking an additional 9.8 per cent stake last February for $13m.
Paddy Power has now announced that it has obtained approval from the Treasurer of the Commonwealth of Australia for the company’s acquisition of the remaining shares in Sportsbet. In December, the company agreed to purchase the remaining 39.2 per cent shareholding in the company for $132.6m, with an additional consideration of up to $25m if Sportsbet’s 2013 EBITDA exceeds $80m.
The Irish bookmakers believes the acquisition would boost earnings and position the company to take advantage of the growing regulated Australian online market. Paddy Power has leaped the highest hurdle with the approval from the Treasurer, but there’s one more internal hurdle left, and that is approval from Paddy Power’s shareholders who will vote on the matter towards the end of the month.