FTSE100 gambling group GVC Holdings has expanded its profile within the Australian online betting scene after acquiring Neds International (Neds – neds.com.au) for an initial sum of AUS $68 million (£37 million).
A relatively new entrant within the Australian online betting scene, having launched in 2017, Neds has established itself as a dynamic incumbent achieving reported wagers of AUS $1 billion combined with gross gaming revenues of $100 million.
The acquisition sees GVC expand and support its existing presence within Australia, which is currently maintained by its ‘Ladbrokes Australia’ brand.
Should the acquisition of Neds prove successful for the FTSE firm’s Australian ambitions, GVC governance has attached a maximum consideration of up to AUS$95m (c£52m).
Updating investors, Kenneth Alexander, GVC CEO, said: “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.”
In its transaction note, GVC governance highlights Neds proprietary technology as a core component of the acquisition, which will enhance the group’s capacities and existing operations within Australia, targeting synergies of $16 million on an annualised basis to be realised by 2020.
Neds is founded and led by former Ladbrokes Australia leaders Dean Shannon (Neds – Executive Chairman) and Paul Cherry (Neds CEO) and former Ladbrokes Australia COO incumbent.
Shannon commented on the sale of Neds: “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.”