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Ladbrokes Acquires US Sportsbook
1/19/2012 : US SPORTSBOOK SUPPLIER ACQUIRED BY LADBROKES
Strategic acquisition as U.S. States head towards legal internet gambling
Ladbrokes has entered into an acquisition agreement for a majority stake, initially of 65 percent, of U.S. sports book supplier Stadium Technology (Stadium) for a consideration of $3 million.
The Las Vegas-based company supplies software and in-game betting applications to sportsbook operators and third party suppliers in Nevada and Delaware and counts Atlantis, Cosmopolitan, Golden Nugget, Hard Rock, Crystal Palace, M Resort, Palazzo Treasure Island and The Venetian amongst its clients.
Under the terms of the deal, Ladbrokes retains the option to acquire the remaining 35 percent of the business based on its performance over the next five years.
Ladbrokes chief executive Richard Glynn commented: "The size of the US market and potential for positive regulatory change in the coming years make it a sensible place to establish a presence. Stadium Technology is already one of the key software suppliers to casinos in Nevada and Delaware and it has the potential to expand."
Ladbrokes has entered into and terminated four sets of acquisition discussions since April 2010 that included companies 888, Playtech and Sportingbet, as well as withdrawing from an auction for Australia's Centrebet.
Last week, the company entered into negotiations with Irish billionaire Dermot Desmond, the owner of the Betdaq betting exchange, over a "technology" deal to revamp the bookmaker's faltering online business, according to a report in British newspapers.
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