Paddy Power Betfair eyes Georgia with £101m deal

PA

Paddy Power Betfair is splashing out £101 million to acquire a majority stake in Georgia’s biggest online gaming firm.

The betting giant said on Friday that it will take a 51% stake in Adjarabet, which has a 40% share of the Georgian market.

In 2018, Adjarabet booked £64 million in revenue and a profit of £20 million.

Paddy Power Betfair boss Peter Jackson said: “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 one in the fast-growing, regulated online Georgian market.”

The group has the option of acquiring the remaining 49% in Adjarabet after three years.

Along with other betting firm, Paddy Power Betfair has been expanding globally amid a tougher regulatory environment in the UK.

Bookies have also been warning about the impact of a recent Government move to slash stakes on fixed-odds betting terminals.

Paddy Power has said the new £2 stake limit would result in a 33% to 43% decrease in machine gaming revenue, or £36 million to £46 million revenue impact.

Shares in Paddy Power Betfair were flat in morning trade at 6,270p.