Ladbrokes expands in Australia with online acquisition

Ladbrokes has agreed to buy Gaming Investments, an Australian online betting business, to expand into the Australian sports betting market. The UK bookmaker will pay A$22.5m (£13m) plus an earnout payable to management after three years for the business, whose operations include Bookmaker.com.au. The deal, which is scheduled to complete in the week beginning September 2nd, will give Ladbrokes betting software designed for the Australian market with a mobile capability and apps. Bookmaker.com launched in February 2012 and took A$400m in stakes in the year to June 30th. Its current management team will stay on. Rival bookmaker Paddy Power's Australian online business has boomed and it increased net revenue by a third in the first half of 2013. Ladbrokes planned to launch its new Ladbrokes.com.au service on September 4th.Richard Glynn, Ladbrokes' Chief Executive, said: "The acquisition of this fast-growing business represents an excellent opportunity for Ladbrokes toestablish 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."