Paddy Power to Complete Sportsbet Buyout

Paddy Power has gained full control of Australian betting company Sportsbet, after agreeing to buy the remaining shares in the company. Paddy Power will pay 132.6m Australian dollars (US$133m) for the remaining 39.2 per cent stake.

Paddy Power first bought the majority 51 per cent stake of Sportsbet in 2009 with the overall buyout set to be completed by the end of February 2011.

A further US$25.1m will be owed by Paddy Power if Sportsbet’s 2013 earnings exceed $80.35m.

Patrick Kennedy, Paddy Power’s chief executive, stated that Sportsbet was “a cracking business”.

“The team has made great strides in marrying the best of both Sportsbet and Paddy Power,” he said.

“This is a good deal to acquire the remaining shares early, which will allow us to drive development and investment and secure full participation in the upside of the business.”