Operators Ladbrokes are to purchase Australian online sports betting business Gaming Investments Pty Ltd (GIPL) for an initial consideration of A$22.5m (approximately £13m).
The deal, which is expected to complete this week, will see Ladbrokes acquire GIPL under their newly formed Ladbrokes Australia arm.
The agreement includes an earnout payable at the end of three years, based on the EBITDA for Ladbrokes Australia for the year ending 30 June 2016.
GIPL’s business includes Bookmaker.com.au Pty Ltd, operators of betting site Bookmaker.com.au, and Panda Gaming Pty Ltd, operators of a racing and sports focused affiliate network in Australia.
Ladbrokes have also announced the launch of their new Ladbrokes.com.au site, while revealing that Ladbrokes Australia is expected to make a “small profit” in the year ending 31 December 2014.
Ladbrokes CEO Richard Glynn said: “The acquisition of this fast-growing business represents an excellent opportunity for Ladbrokes to establish a strong presence in Australia, in line with our strategy to extend geographic reach to key regulated markets.
“At launch Ladbrokes Australia will have a highly experienced management team who are strongly incentivised to achieve further customer and revenue growth over the coming years.”