Ladbrokes plc (LAD.L) said it would acquire Global Betting Exchange Alderney Ltd. or "GBEA", the operator of the Betdaq exchange business, for an initial consideration of 30 million euros on a cash free/debt free basis from TBH Ltd. In addition, Ladbrokes has agreed to acquire a 10% interest in TBH Guernsey Ltd or "TBHG", the technology provider to GBEA, from TBH for 4 million euros, with a call option to purchase the rest of shares in TBHG after four years.
GBEA would have a discrete management structure and its technology maintenance and development requirements would be wholly provided by TBHG. Betdaq consists of two businesses: an exchange operator, GBEA and an exchange technology supplier TBHG. The initial consideration for GBEA is 30 million euros, with 15 million euros of the consideration to be settled in Ladbrokes shares.
The transaction, which may close in late February 2013, is expected to be earnings accretive in 2013.
For comments and feedback: editorial@rttnews.com