GVC Holdings announced the acquisition of Neds International for an initial consideration of AUS$68m (c£37m). The total maximum consideration for this deal could go up to AUS$95m (c. £52m).
Neds International, a relatively new entrant into the Australian digital sports betting market, was launched in 2017. By combining effective marketing, proprietary technology and an experienced management team, the business has grown rapidly and is expected to achieve AUS$c1bn of wagers and GGR of AUS$c100m in the year to 31 December 2018.
This deal represents a key development in GVC’s ambition to be a market leader in Australia. In addition to scale, Neds’ proprietary technology complements and increases the group’s existing operations in Australia. The synergies from the deal are expected to be AUS$c16m on an annualised basis and will be fully realised in 2021.
Kenneth Alexander, GVC’s CEO 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.”