Company behind Foxy Bingo and Ladbrokes looks Down Under for £52m acquisition

The parent company of sports betting and gaming brands including Foxy Bingo, Gala and Ladbrokes is acquiring an Australian firm for up to £52m.

GVC Holdings PLC will pay an initial AUS$68m (c£37m) for Neds International, a new entrant in Australia’s digital sports betting market, with the total consideration potentially rising to $95m.

Despite only launching in 2017, Neds International is expecting to generate a gross gaming revenue of around $c100m in 2018 against $1bn of customer wagers.

Australia is a core market for GVC, which said the deal will create a ‘top three player’ in the country’s gambling sector.

Chief exec 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.”

Neds executive chair Dean Shannon commented: “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, CEO of Ladbrokes Australia, said of the 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.”

GVC has forecast the acquisition to be earnings accretive from 2020.