GVC Acquires Neds International For $95 Million

Online gambling operator from the Isle of Man, GVC Holdings PLC, has officially announced the purchase of Neds International – sports betting and gaming giant from Australia. The initial offer of AUS$68 million, which is approximately US$49 million, has the potential to grow to a whopping AUS$95 million, report reads.

Neds was established in 2017, but it soon caught the eye of impending investors, who recognized a fast growth rate – primarily based on the income, which consists of AUS$1 billion in wagers, and another AUS$100 million in gross gaming review.

Boosting Presence In Australia

According to GVC, this acquisition will augment its business on the Australian continent, since the company’s expectations to become one of the top three operators in the country is part of a long-term expansion strategy.

The brand also anticipates annual proceeds of AUS$16 million, although this goal is to be set in early 2021. However, the group is certain that the “acquisition is to be earnings accretive from 2020.”

CEO at one of the world’s largest sports betting and gaming groups, Kenny Alexander, commented on the acquisition:

“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.”

Ned’s executive chairman, Dean Shannon, said that GVC is a natural fit for the business, tending to deliver leading top products and service to customers worldwide.

Controversy Stays Behind

In its short history in the Australian market, Neds International has been entangled in multiple controversies, mainly for offering inducements to people, forcing them to gamble. The company was even fined and convicted for boasting provocative advertising campaigns that were to attract new customers.

Still, the establishment will be governed by Jason Scott from now on, chief executive of Ladbrokes Australia. As reported by the gaming group, increasing customer bases due to the newly imposed wagering taxes in the country is what the business will focus on. Scott is thrilled to lead the recently acquired bookmaker and says that the transaction proves GVC’s intention to stay in the country.

Furthermore, the company’s acquisition of Neds comes right after the purchase of The Stars Group, leading poker platform and BetEasy, corporate bookmaker for online sports and racing betting platforms. In September 2018, the operator has even been awarded the Dow Jones hip for “providing continuous corporate sustainability in the industry.” A month earlier, the iGaming conglomerate announced possible merging with MGM Resorts, a worldwide entertainment industry giant from Las Vegas.

Source:

“GVC buys Australia’s Neds International”, Tim Poole, gamblinginsider.com, November 22, 2018.