GVC Purchase Ladbrokes Coral in £4bn Deal
December 22, 2017
In a deal worth up to £4bn, GVC – the owner of Bwin, Sportingbet and the Foxy Bingo brands – have bought out their online rival Ladbrokes Coral.
Ladbrokes merged with the Gala Coral Group in 2015 to become the UK’s biggest high street bookmaker with 3,500 outlets and 25,000 employees.
GVC Holdings were founded in 2004, and along with Bwin, Sportingbet and Foxy Bingo, also own Partypoker, Partycasino, Betboo, Gamebookers, CasinoClub and Gioco Digitale.
“The Ladbrokes Coral board believes that the proposed combination with GVC accelerates our strategy to improve the customer experience, drive faster online growth and build a more diverse and extensive international portfolio of businesses,” said the chairman of Ladbrokes Coral John Kelly.
“The acquisition has compelling strategic rationale allied to an opportunity to use the best of both from proven management teams and will create material shareholder value. It secures earlier delivery of our long-term value potential, which is why the board of Ladbrokes Coral has unanimously recommended GVC’s offer.”
GVC will own 53.5% of the group under the terms of the takeover deal as companies within the gambling industry look to consolidate their position amid the pending review over the lucrative betting machines.
The move to lower maximum bets on fixed-odds betting terminals will almost certainly cut earnings for those within the sector.
“The creation of one of the world’s largest listed sportsbetting companies, combining a portfolio of established brands, proven technology and leading market positions in multiple geographies, is a truly exciting prospect,” said the CEO of GVC Kenneth Alexander.
“In a dynamically evolving industry, the transaction creates an Enlarged Group with the scale, diversity, proprietary technology and management expertise to pursue many opportunities globally.”