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GVC strengthens position in Australia with £52mln Neds acquisition

Australia is a “core market” for GVC, and the FTSE 100 betting group said Neds would help it in its bid to become the market leader in the region
horse racing
GVC owns the Ladbrokes and Coral brands

Ladbrokes owner GVC Holdings PLC (LON:GVC) has snapped up Aussie digital sports betting group Neds International for a fee which could rise up to A$95mln (£52mln).

Neds only launched in 2017 but it has grown already expected to achieve A$1bn of wagers and A$100mln of gross gaming revenues this year.

READ: Gaming firm GVC's first half boosted by online growth, strong World Cup

Australia is a core market for GVC, and the FTSE 100 company said its latest acquisition, which is expected to be earnings accretive from 2020, would help it in its quest to become a market leader in the region.

GVC reckons it can save A$16mln a year by combining its current Australian operations with Neds.

“Australia is a core market for the group and today's acquisition further strengthens our position,” said chief executive Kenneth Alexander.

“Neds is an exciting business, with talented people and enables us to further grow market share through two differentiated brands.”

GVC shares were broadly flat at 772p on Thursday morning.

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