GVC and Ladbrokes Coral agree £4bn merger

Glob

ladbrokesgvcagreed
al gaming group GVC and UK bookmaker Ladbrokes Coral have now agreed a £4bn merger deal following months of speculation.

Under the agreed deal, GVC has valued the firm at 160.9p a share, with additional loan notes included at an extra 42.8p per share. The companies said the merger would result in cost savings of at least £100m a year.

This merger would lead to GVC owning 53.5% of the combined group, with Ladbrokes Coral shareholders owning 46.5%; GVC Chief Executive Kenneth Alexander will be heading up the combined group.

Existing Ladbrokes Coral shareholders will be entitled to 32.7p in cash, a further 0.141 ordinary shares in GVC and a contingent entitlement of up to a further 42.8p.

However, both companies have confirmed that the final acquisition cost is dependent on the outcome of the UK government’s long-awaited triennial review into the gambling industry, where it is expected to announce the implementation of restrictions on fixed odd betting terminals.

At present, GVC employs 2,800 staff and contractors in 15 offices internationally, while Ladbrokes has over 3,700 betting shops employing more than 25,000 staff around the UK.

Releasing a joint statement on the acquisition agreement on the GVC website, Kenneth Alexander, CEO of GVC said: "The creation of one of the world’s largest listed sportsbetting companies, combining a portfolio of established brands, proven technology and leading market positions in multiple geographies, is a truly exciting prospect.

“GVC has a proven track record of creating shareholder value through the successful integration of acquired businesses and the GVC Board believe this transaction will create further value for our shareholders and those of Ladbrokes Coral."

John Kelly, Chairman of Ladbrokes Coral added: "The Ladbrokes Coral Board believes that the proposed combination with GVC accelerates our strategy to improve the customer experience, drive faster online growth and build a more diverse and extensive international portfolio of businesses.

“The acquisition has compelling strategic rationale allied to an opportunity to use the best of both from proven management teams and will create material shareholder value. It secures earlier delivery of our long-term value potential, which is why the Board of Ladbrokes Coral has unanimously recommended GVC's offer."

Premium+ Connections
Premium

Lynon

 
Premium

Galaxsys

 
Premium

RISK

 
Premium

1xBet Partners

 
Premium

PIN-UP Partners

 
Premium

GammaStack

 
 
 
Premium

Sport Generate

 
Premium

Imagine Live

 
Premium

Digitain

 
Premium Connections
Consultancy

SCCG Management

Executive Profiles
VIP Play

Les Ottolenghi

Scientific Games

Keshav Pitani

Esportes Gaming Brasil

Ana Carolina Luna Maçães

Social & App

Spribe CEO exclusive: Simplicity is the foundation

Spribe CEO David Natroshvili speaks to Gambling Insider abou...

Redefining iGaming: A history of crash games

Crash games is a growing vertical that has taken gambling by...

A certain something: What makes crash games special?

Crash games. They’re simple, they’re easy to learn and,...

Smarter innovation to shape the future

Spribe CCO Giorgi Tsutskiridze discusses the past, present a...

Facing Facts: The corner of quarterly contemplation

With Q1 reports out across the industry, Gambling Insider co...

Taking Stock: A guide to key stock prices across the industry

Gambling Insider tracks prices from some of the industry’s...

15 years of Gambling Insider: From the Founders

Over the last 15 years, Gambling Insider magazine has interv...

15 years of Gambling Insider: The Awards over time

Global Gaming Awards Event Manager Mariya Savova gives us he...