Paddy Power Betfair has acquired the country of Georgia’s largest online gambling operator Adjarabet for about $132.5 million.
The Dublin-headquartered company said in a press release that the purchase was part of its strategy to extend its footprint and cement its position into rapidly growing digital betting and gaming markets.
Under the terms of the deal, Paddy Power has acquired a 51 percent stake in Adjarabet for £101 million. The company also revealed that it has the option to buy the remaining 49 percent after three years at a price of seven times Adjarabet’s EBITDA for 2021.
Adjarabet has an estimated 40 percent share of overall online revenue generated in the country, The company also operates in Armenia in 2017. Adjarabet’s total 2018 revenue amounted to about $80.6 million.
Paddy Power Betfair CEO Peter Jackson said the deal came in line with the company’s strategy to establish “podium positions in attractive online markets.”
The story breaks shortly after a report by The Times that Paddy Power secretly held talks late last year to merge with The Stars Group, parent company of PokerStars and Sky Betting & Gaming. The two operators did not comment on the matter and The Times reported that talks were no longer taking place.
