GVC Holdings has paid in initial £37m to buy start-up Neds International in a move the sports betting and gaming group believes will make it a top-three player in the Australian market.
The deal, which could ultimately be worth up to £52m, sees GVC take up a relatively new entrant in the Aussie market. Operator Neds started life in 2017 and is expected to achieve AUS$1bn in wagers and AUS$100m GGR in 2018.
GVC sees Australia as a core market for the group and one that is growing strongly. Scale is “increasingly important”, they argue, stating that the deal “represents a key development in our ambition to be a market leader in Australia”. Neds’ proprietary technology also complements and enhances existing operations in Australia.
Anticipated synergies from combining the respective operations are around AUS$16m on an annualised basis and fully realised in 2021. The acquisition is expected to be earnings accretive from 2020.
GVC’s CEO Kenneth Alexander said: “Australia is a core market for the Group and today’s acquisition further strengthens our position. Neds is an exciting business, with talented people and enables us to further grow market share through two differentiated brands.”
Dean Shannon, executive chair of Neds, said: “GVC is a natural fit for the Neds business, we share the same entrepreneurial ideals, whilst delivering market leading products and service to our customers.”
Jason Scott, Australian CEO of Ladbrokes, said: “I am thrilled to lead the Ladbrokes and Neds businesses. The transaction proves beyond all doubt that GVC is here to stay in the Australian market.”
