Paddy Power Betfair plc has acquired a 51 percent majority stake in leading online Georgian operator Adjarabet for a GBP 101 million consideration.
Adjarabet is licensed to offer a full suite of online betting and gaming products in Georgia including casino, sports, poker and peer-to-peer games. It is the market leader with an estimated 40 percent share of total online revenues.
In 2018, Adjarabet generated revenues of GEL 215 million (GBP 64 million) and EBITDA of GEL 68 million (GBP 20 milliion).
A mechanism has also been agreed, consisting of call and put options, which enables the Group to acquire the remaining 49 percent after three years at a valuation equivalent to 7 times 2021 EBITDA.
Peter Jackson, Chief Executive, commented:
“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”.