Wednesday April 9,2014 :  LADBROKES CONFIRMS BETSTAR ACQUISITION (Update)
 
A$ 22 million paid for Aussie online sports betting site.
 
UK land and online gambling group Ladbrokes has confirmed media reports yesterday  that it has acquired the Australian online sportsbetting company Betstar, advising that it paid A$ 22 million (GBP12.4 million) for the asset.
 
Betstar has approximately 40,000 registered customers and, in the year to 31 March 2014, it generated gross win of c.A$12.9 million on A$214 million amounts staked. On completion the business is projected to be break-even at an EBITDA level for the prior twelve months.
 
Annualised cost synergies of approximately A$5 million will be realised from the migration of Betstar’s operations to Ladbrokes’ digital platform and the acquisition is expected to be earnings accretive in its first year under Ladbrokes ownership.
 
The Betstar brand will be maintained, a Ladbrokes spokesman said.
 
The acquisition builds on the company's presence in the Australian market following last year’s acquisition of Bookmaker.com.au and the creation of Ladbrokes.com.au.
 
Commenting on the acquisition, Ladbrokes md for international operations, Damian Cope said:
 
“Australia represents one of the most vibrant regulated sports betting markets in the world and today’s announcement will see us add new customers to our growing presence.  It offers us a chance to improve our market share and bring the innovative product development and marketing skills displayed by Ladbrokes.com.au to a wider audience.