Ladbrokes acquires Betdaq betting exchange for €30m

British betting services giant Ladbrokes has acquired the Dublin-based betting exchange, Betdaq for an initial consideration of €30m.

Ladbrokes confirmed two weeks ago it was in talks with the Dermot Desmond- founded firm over a possible takeover, in response to media speculation.

Ladbrokes confirmed the purchase yesterday; saying it should be earnings accretive this year and allow it to address “the full spectrum of the broader sports betting market and access a greater share of existing and future customers’ betting expenditure”.

It also noted that a large proportion of its customer base already uses betting exchanges as well.

Betdaq has an estimated 7% share of the online betting market in Ireland and Britain.

The deal will boost Ladbrokes’s flagging digital offering and enhance its services beyond the fixed-odds betting channel.

Chief executive, Richard Glynn, called Betdaq a “well-regarded and well-invested business”, which will prove “a close strategic fit” for Ladbrokes.

“Whilst the main focus of our digital growth strategy continues to progress well, this bolt-on acquisition provides us with an exciting opportunity to grow our share of wallet through the creation of a differentiated and comprehensive sports betting proposition for customers, and also supports our drive for improved liability management,” he said.

Technically, Ladbrokes is paying €30m for Betdaq’s exchange operator, GBEA; with half of that sum being settled via Ladbrokes shares. But it will also acquire a 10% stake in TBHG, the division of Betdaq which supplies the technology for the betting exchange to function.

Ladbrokes will also have an option to buy the remaining 90% of the latter business and a further option to sell back the 10% stake, for €4m, if it doesn’t exercise the first option.

As the total consideration for the GBEA acquisition is capped, the takeover will not require shareholder approval.


More in this Section

US rate fears crash party

No surprise if airlines collapse as winter sets in

Little drama and little joy from today’s budget


Breaking Stories

Index shows weak growth in consumer spending prior to Budget

No-deal Brexit could raise costs for Irish households

Tesla secures land in China for first factory outside US

Netflix adds seven million subscribers over summer

Breaking Stories

Cork Film Festival launches 2018 programme of 250 films

How to make Prue Leith’s ‘almost Thai’ fish cakes

Could this be the most spiritual retreat in Vietnam?

What’s it like to stay in Richard Branson’s favourite Balearic retreat?

More From The Irish Examiner