The acquisition involves a cash consideration of €141m ($148m). Additionally, Flutter has an option to acquire the remaining 49% stake in MaxBet in 2029. The transaction is expected to complete in the first quarter of 2024, pending customary regulatory clearances.
The cash consideration for the 51% stake in MaxBet is on a debt and cash-free basis, and an additional payment may be made if MaxBet surpasses its expected financial performance in 2023.
MaxBet's operations span across Serbia, Bosnia, Montenegro and North Macedonia, with a significant portion of revenues originating from the Serbian market.
The operator has established an omni-channel presence in its primary Serbian market, strategically positioning itself to leverage the substantial growth of the online market, which has witnessed an impressive 25% compound annual growth rate over the last five years.
Notably, in the 12 months leading up to June 2023, MaxBet reported pro forma fully regulated revenue of €145m. Of this, 44% of the revenue was generated online, contributing to an adjusted EBITDA of €32m.
MaxBet contributes a strong local presence with a 20% share of the online market. It has more than 400 retail outlets and an engaged monthly online player base of around 95,000.
Flutter says the acquisition will strategically enhance its position in regulated markets, aligning with its value-driven M&A approach. Flutter believes that Serbia, valued at €700m in 2022 with a 35% online penetration, will offer the company a promising landscape.
Additionally, the anticipated 15% annual growth in online penetration by 2025 in the Balkans, driven by cash-led economies and retail significance, adds to its appeal.
Peter Jackson, Chief Executive of Flutter Entertainment, says: “ I am excited to announce the addition of MaxBet to the Flutter portfolio. This acquisition continues our progress against the strategic priorities we have set for our International division; to buy and build podium positions in regulated markets.
“We believe MaxBet is an excellent opportunity to replicate the success we have achieved in markets like Georgia, India and Italy by acquiring a strong brand in a podium position, where we see a compelling opportunity to combine that extensive local expertise with the power of the Flutter Edge to accelerate and transform growth.”
