FTSE100 Paddy Power Betfair (PPB) has expanded its reach into the Georgian regulated gambling market acquiring a 51 per cent shareholding in leading betting and gaming group Adjarabet.
The initial cash consideration put forward for Adjarabet’s majority shareholding totals £101m, with the UK operator granted first right to acquire the remaining 49 per cent within a period of three years.
The Adjarabet buyout represents PPB ’s second major M&A investment under the guidance of Group CEO Peter Jackson, the first of which was leading US daily fantasy sports operator FanDuel, undertaken in July 2018.
Jackson commented on the new acquisition: “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 number 1 in the fast-growing, regulated online Georgian market.
“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”.
Adjarabet currently offers a full suite of online betting and gaming products across Georgia; it includes casino, sports, poker and peer-to-peer games.
A key component of the leadership position for Paddy Power Betfair is the strength of Adjarabet’s brand. The Georgian operator currently has circa 86 per cent spontaneous brand awareness among its native population, in addition to a ten per cent share in the Armenian market.