Ladbrokes In €30 Million Betdaq Deal

Ladbrokes In €30 Million Betdaq DealThe UK’s biggest bookmaker Ladbrokes has agreed a €30 million deal to buy Global Betting Exchange Alderney (GBEA) and is expected to complete the acquisition by late February 2013.
GBEA is the parent company of Betdaq, whose owner Dermot Desmond is one of Ireland’s richest people with an estimated fortune worth €1.35 billion. Mr Desmond already has a 2% stake in Ladbrokes and it is believed €15 million of the €30 million agreed deal will be payed to him by way of shares.
Betdaq is the second biggest betting exchange in the world with €2.8 million in profits last year and gross assets worth €35.4 million. Both companies already have a business relationship, with Ladbrokes hedging their wagers by using the Betdaq betting exchange. By purchasing the company Ladbrokes is hoping that it will now be able to hang on to its customers who sometimes use market leader Betfair’s more efficient peer-to-peer model.
The deal is likely to suit both companies equally well as Betfair is 20 times the size of its nearest rival and Ladbrokes will now be seeking to invest in Betdaq so that it might better compete with the betting exchange behemoth. Following announcement of the deal, Ladbrokes CEO Richard Glynn explained that the acquisition would help Ladbrokes’ “strategy to grow digital revenues through investment in proprietary technology and delivery of best of breed products, providing a differentiated experience to customers.”
Despite the possibility of increased competition from Betdaq, news of the deal left Betfair’s share price largely unaffected and is currently down 0.6% at 664p. Meanwhile, Ladbrokes shares are presently trading up 2.18% at 210.60.
Commenting on the potential of the deal, analyst Daniel Stewart & Co said: “In our view, we think it may prove too early at this stage to assess whether or not the exchange will prove a success and provide the necessary turnaround in the fortunes of LAD Digital (online) business. It is possible in our view the exchange could lead to cannibalization to some degree on the other hand if it gains the necessary momentum it should prove a competitive offering against the largest exchange Betfair (NR).”

Poker News
24 Apr 2018
Last weekend, The Stars Group (TSG) announced its intention to acquire Sky Betting & Gaming (SBG) for $4.7 billion, with the deal now awaiting approval from regulatory bodies associated with stock exchanges such as the Nasdaq (USA) and Toronto Stock Exchange (Canada) before being finalized. The Stars Group already runs the world’s biggest online poker
24 May 2012
Last month it was announced PokerStars was considering the purchase of  Full Tilt Poker as part of a wider deal to settle their own affairs with the U.S. Justice Department. Although details have remained sketchy, $750 million was suggested by Chilipoker CEO Alexandre Dreyfus, as a possible figure for the purchase which would include full
09 May 2012
This week, Lock Poker signalled it’s intention to expand operations after announcing  it was to leave the Merge Gaming Network and acquire the assets of the Cake Poker Network in order to launch its own network called Revolution Gaming on June 1st. The move will likely see Lock Poker keep its current identity on the
29 Apr 2012
A few days ago, news that the $80 million deal to purchase Full Tilt Poker by Groupe Bernard Tapei (GBT) had fallen through was immediately followed by the startling revelation that PokerStars had now stepped into the frame and was negotiating with the US Department of Justice in a deal worth $750 million. The potential