Ladbrokes strikes €30m deal for BetdaqThursday 24 January 2013 11.40
British bookmaker Ladbrokes has agreed a deal to to acquire Betdaq from TBH Ltd. The deal is worth €30m.
In addition, Ladbrokes has agreed to acquire a 10% stake in TBH Guernsey Ltd, the technology provider to Betdaq for €4m.
The deal is expected to be completed next month.
Betdaq was set up by billionaire Dermot Desmond in 2000. Its betting exchange allows gamblers to bet against one another, rather than using the odds set by the bookmaker.
Ladbrokes had recently been rumoured to be in talks with Betdaq as Ladbrokes tried to boost its faltering online business. Online gambling is the fastest growing sector of the market but remains highly fragmented and is seen as ripe for consolidation.
Ladbrokes is Britain's second largest bookmaker. It had unsuccessful takeover talks with online gambling companies 888 Holdings and Sportingbet in 2011.
Larger rival William Hill last month agreed a £485m deal to buy Sportingbet in partnership with smaller GVC Holdings.
Profit at Ladbrokes digital business halved in the first six months of 2012. As a response, it has stepped up investment in technology and appointed a new director for that part of the business.
"The Betdaq exchange is a well-regarded and well invested business and a close strategic fit for Ladbrokes,'' said the company's chief executive Richard Glynn.
''Whilst the main focus of our digital growth strategy continues to progress well, this bolt on acquisition provides us with an exciting opportunity to grow our share of wallet through the creation of a differentiated and comprehensive sports betting proposition for customers and also supports our drive for improved liability management."