Internet betting group Paddy Power Betfair has announced that they've purchased a 51% stake in Georgia betting firm Adjarabet and will have control of the company as a result.
The agreement is reported to be worth £101 million, with Paddy Power Betfair controlling the vast majority of the company, which also controls 40% of the betting market in Georgia. The market has ramped up with sportsbetting growing 40% over the past two years. The deal could see Paddy Power picking up 100% of the stakes in the company down the road if they so choose.
Commenting on the deal Paddy Power CEO Peter Jackson (not the filmmaker) 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 1 in the fast-growing, regulated online Georgian market."
No timetable for the integration into Paddy Power's umbrella was available as of press time.
The company obviously seeing a huge potential in the Georgian market making that enormous investment but buying a company which holds 40%! of the local market with a good perspectives of growth is an investment which would paid out multiple times in the years to come I guess.