Flutter Entertainment PLC (LSE:FLTR) has taken a 51% stake in MaxBet, Serbia's number two omni-channel sports betting and gaming operator.
The owner of Betfair, FanDuel and Paddy Power is paying £123 million cash for the holding, with an opportunity to buy the remaining 49% in 2029.
“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,” said Peter Jackson, Flutter's chief executive.
MaxBet will provide Flutter with the platform to access fast-growing markets, the firm said in a statement.
In the 12 months to June 2023, MaxBet generated pro forma fully regulated revenue of €145 million of which 44% is online, with adjusted EBITDA of €32 million.
Flutter said Serbia is an attractive, regulated market (2022: €700 million) with relatively low online penetration of circa 35% and expected online compound annual growth to 2025 of approximately 15%.
The deal is expected to close in the first quarter of 2024.