Paddy Power owner Flutter Entertainment has acquired a majority stake in Serbian sports betting operator MaxBet for more than €140 million.
Under the terms of the deal, Flutter will take an initial 51 per cent stake in the company, paying €141 million on a debt and cash free basis, with a further payment made if MaxBet beats expectations this year. Flutter will also have the chance to buy the remaining 49 per cent in 2029 on similar terms.
The acquisition will give Flutter a foothold in the fast-growing Serbian market, where online penetration currently stands at around 35 per cent, and provides the opportunity for further expansion in the Balkans region.
MaxBet is currently one of the top operators in the Serbian market, with an estimated 20 per cent online share, 400 retail outlets and an average of 95,000 monthly players. It employs 2,400 people.
In the 12 months to June 2023, the company had revenues of €145 million and adjusted earnings before interest, tax, depreciation and amortisation of €32 million.
“This acquisition continues our progress against the strategic priorities we have set for our International division; to buy and build podium positions in regulated markets,” said Peter Jackson, Flutter chief executive. “We believe MaxBet is an excellent opportunity to replicate the success we have achieved in markets like Georgia, India and Italy by acquiring a strong brand in a podium position, where we see a compelling opportunity to combine that extensive local expertise with the power of the Flutter Edge to accelerate and transform growth.”
The deal is expected to close in the first quarter of 2024.
