Paddy Power Betfair Acquires Majority Stake in Adjarabet

Paddy Power Betfair, a bookmaking business company created by the merger of Paddy Power and Betfair…

…has officially acquired a 51% stake in Georgian online sports and betting brand, Adjarbet, for €101 million.

Growing on the European Market

The Ireland-based operator announced this big venture as a part of the company’s European diversification plan and sealing its position on the Georgian igaming market.

“This bolt-on acquisition is in line with our strategy of establishing podium positions in attractive online markets. Adjarabet’s leading brand presence and strong management team has established it as the clear no.1 in the fast-growing, regulated online Georgian market,“ said Peter Jackson, chief executive of Paddy Power Betfair.

“Together with our group’s technology and sports capabilities, we are confident that Adjarabet will be strongly positioned to continue to build on this success,” Jackson added.

The Irish operator also has the possibility of purchasing the entirety of Adjarabet through buying the remaining 49% in stakes after three years.

Who is Adjarabet?

One of the leading betting operators in Georgia, Adjarabet, which partnered with Yggdrasil back i n2017, has a market share of about 40% according to the customer deposit data of this country positioned in the intersection of Europe and Asia. The company is also present in the neighboring country of Armenia via a partnership with Adjaranet.

Adjarabet is a Georgian operator of online betting and gaming services…

…including casino titles, sports betting, poker, and peer-to-peer games. Last year, the company announced a £64 million of revenue and £20 million in EBITDA.

Paddy Power Betfair Doing Good

The past year was great for the brand. The company revealed a revenue of £483 million in Q3, which was an 8% rise on a proforma basis and around 12% in constant currency.

Also, the company’s European online revenue jumped up by 15%.

In January, the UK’s betting titan made one more crucial step towards expanding their offering in the European market by g a content deal with SG Digital to integrate their OGS digital platform.

“We’re thrilled to have delivered our OGS service to long-standing partner Paddy Power Betfair for its UK, Irish and Italian operations. They are an established operator with a sizeable offering and the decision to integrate OGS for its key regulated markets is further endorsement of the scalability and quality of our gaming product portfolio,” SG’s Senior Vice President, Dylan Slaney. commented.

About the Irish Bookmaker

Formed in 2016 as international, multi-channel sports betting and gaming operator, Paddy Power Betfair now operates five main sports betting and gaming brands: Paddy Power, Betfair, FanDuel /fanduel-inks-marketing-technology-agreement-with-fresh8/, Sportsbet and TVG.

After the official merger of two world’s biggest gaming companies, it became an even larger online gaming giant. But, the interesting thing is that the part of the deal was for both companies to remain separate…

…and also to work off each other to build both entities.

Paddy shareholders have a 52% stake in the business, while Betfair owners have a 48% share.

Source:

“Paddy Power Betfair takes majority stake in Adjarabet”, igamingbusiness.com, February 1, 2019.