Ladbrokes has entered the Australian market with the low cost acquisition of a local online gambling company.
Gaming Investments Pty Ltd has been purchased by Ladbrokes in a deal that was worth $22.5 million, with the opportunity for future payments based on results over the next three years.
The acquired company will now operate as Ladbrokes Australia, and will be overseen by Ladbrokes’ Chief Executive Officer, Richard Glynn.
Glynn is confident that Ladbrokes has chosen the best platform to launch its latest international arm.
“The acquisition of this fast growing business represents an excellent opportunity for Ladbrokes to establish a strong presence in Australia, in lines with our strategy to extend geographical reach to key regulated markets,” said Glynn.
“At launch Ladbrokes Australia will have a highly experienced management team who are strongly incentivised to achieve further customer and revenue growth in the coming years.”
Gaming Investments currently own and run Bookmaker.com.au, which was launched in February 2012.
Since that time, the online wagering company has managed to achieve close to $400 million in stakes and has aligned its site and services to suit the local Australian market.
With such a large growth in such a small period of time, Ladbrokes decided the company was an ideal platform to launch in Australia for the very first time.
As part of the buyout, Ladbrokes have retained the original Bookmaker.com.au staffing team, who are dedicated to delivering a successful and popular product.
Ladbrokes Australia also will be run by the existing Gaming Investments management team, who as shareholders themselves have a long term interest in the company’s success.
With Ladbrokes Australia expected to make a small profit in the year ending December 31, 2014, the parent company in the United Kingdom has achieved a lucrative investment for a small initial outlay.