GVC acquires Australian betting start-up Neds for up to £52m
London-listed operator to pay an initial £37m for the sportsbook start-up founded by former Ladbrokes Australia CEO Dean Shannon
GVC Holdings has acquired fledging Australian betting operator Neds International for up to AU$95m (£52m), in a deal the London-listed operator said will give it a top-three market position Down Under.
The deal will see GVC pay an initial consideration of AU$68m (£37m) for the Brisbane-based sportsbook start-up, which was founded last year by former Ladbrokes Australia CEO Dean Shannon.
According to a statement this morning, Neds, which boasts its own proprietary technology, achieved wagers totalling AU$c1bn and recorded gross gaming revenue of AU$c100m last year.
GVC said it expects synergies from combining its respective operations, including Ladbrokes Australia, of AUS$c16m on an annualised basis and fully realised in 2021, with the acquisition to be earnings accretive from 2020.
“Australia is a core market for the Group and today’s acquisition further strengthens our position,” GVC CEO Kenny Alexander said.
“Neds is an exciting business, with talented people and enables us to further grow market share through two differentiated brands.”
The acquisition of Neds adds to the Ladbrokes Australia business GVC bought as part of its Ladbrokes Coral deal earlier this year, and the two businesses will be headed up by Ladbrokes Australia CEO Jason Scott.
“I am thrilled to lead the Ladbrokes and Neds businesses,” Scott said. “The transaction proves beyond all doubt that GVC is here to stay in the Australian market.”
Neds launched in 2017 just over a year after Shannon had left Ladbrokes Australia where he had worked as CEO for more than three years.
Shannon had been with Ladbrokes since September 2013 when he sold Bookmaker.com.au – which he founded in February 2012 – to Ladbrokes for AU$22.5m.
Shannon added: “GVC is a natural fit for the Neds business, we share the same entrepreneurial ideals, whilst delivering market leading products and service to our customers.”
Earlier this year, Neds won two awards at the EGR Australia Awards for Marketing Campaign and Rising Star. Ladbrokes Australia was also crowned Operator of the Year.
Read EGR‘s interview with Dean Shannon earlier this year here.