Unibet's in Position to Enter Australian Market with Acquisition of Betchoice
Posted at 09:23 2012-02-08
Unibet Group has signed an agreement to acquire Betchoice Corporation Pty Ltd, a leading Australian online bookmaker. According to a press release, the agreement, which is subject to approval by Australia’s Northern Territory Racing Commission, allows Unibet the following:
Provides access to the fast growing Australian online market;
Represents a solid platform from which to invest further and gain market share;
Positions Unibet well for the anticipated opening of live betting products in Australia at some stage in the future;
Provides Unibet with horse racing capability which can be leveraged further across the group.
“This strategic acquisition gives Unibet immediate access to the regulated Australian market, which is currently open to sports betting and horse racing, said Unibet CEO Henrik Tjärnström. “We intend to rebrand the business quickly to Unibet. Betchoice already has a strong offering and market position in horse racing and through Kambi, Unibet has the opportunity to enhance the quality and performance of Betchoice’s sports betting offering and so to deliver revenue growth and margin improvements.”
Tjärnström added: “In addition to benefit from the already existing Australian product offering, the acquisition of Betchoice will provide Unibet with a platform to facilitate other gambling services and opportunities should market conditions continue to improve.”
The deal allows for Unibet to acquire Betchoice for AUD$20.0 million (GBP 13.6 million), with an earn-out for Mark Morrissey, co-founder and Chairman of Betchoice, who is slated to stay on after the deal’s completion.
“We are delighted to become part of the wider Unibet group,” Morrissey said. “There is a substantial market opportunity in Australia and with Unibet’s expertise in marketing and risk management, together with its market-leading sports betting offering, I am confident that we can increase substantially our market share and establish Unibet as one of the leading brands in Australia.”
Unibet will rebrand the Betchoice platform to Unibet after a short transition period, and will “invest significantly in improving the Australian product portfolio and in marketing to establish the Unibet brand in the fast growing Australian market.”
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