GVC Holdings shells out £52m on Australian sportsbook start-up
GVC Holdings has announced its latest acquisition in the form of the Australian sports betting start-up Neds International.
According to a press release posted on the group’s corporate website, GVC will pay an initial AUS$68m (£37m). That figure could rise to a maximum of AUS$95m (£52m).
The move cements GVC’s status as a major player in the Australian market, with the firm stating that the combined business will quickly become a top-three operator down under, as the group aim to be a market leader in Australia.
The acquisition certainly helps with scale, but GVC also pointed out that Neds International’s proprietary technology will enhance the groups existing technology offering. GVC expects that combining the businesses will see AUS$c16m annually, which will be fully realised in 2021. GVC expects the move to be earnings accretive by 2020.
Speaking about the deal, GVC Holdings CEO, Kenny 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.– Kenny Alexander, GVC Holdings CEO
Neds operation will be combined with GVC’s Ladbrokes Australia, which was acquired as part of this year’s acquisition of Ladbrokes Coral. Jason Scott heads up that operation and had this to say about he new deal:
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.– Jason Scott, Ladbrokes Australia CEO
Neds International, a Brisbane based sportsbook, was founded just a year ago by Dean Shannon, former CEO of Labrokes Australia.
GVC credits the rapid rise of the operation to “effective marketing, proprietary technology, and an experienced management team”. Either way, since its launch last year, Neds has already managed to achieve AUS$1bn of wagers and AUS$100m GGR in the year up to December 2018.
Shannon previously worked at Ladbrokes Australia since 2013. Leaving after three years in 2016, Shannon was able to launch Neds just one year later in 2017. Speaking about the move, executive chair of Neds, Dean Shannon, 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.– Dean Shannon, Neds executive chair