Sportingbet has confirmed that it is in talks with the Australian bookmaker Centrebet regarding a purchase agreement
The leading gaming organization, Sportingbet, could be on its way to making a significant purchase as executives announce new designs on Centrebet assets. The London based firm, which came into being in 1997, has revealed that it is in talks with Centrebet International Ltd and could be on its way to making a high profile acquisition later this year. Representatives insist that talks are in their very early stages with equity and financing issues still to be resolved. The Australian bookmaker is currently valued at AUS$175m and is likely to be bought in cash, say experts.
Centrebet made headlines earlier this year after suffering a disappointing set of profits. First half net figures were down 71% on the previous year – a drop which has been attributed to the company’s investment in ‘Project Rocket’. The firm’s 5% share of horse racing turnover also fell short of the 24% figure enjoyed by online sports wagering following the launch of the Project Rocket initiative. Centrebet executives remain adamant that the move will see the company double its share of the Australian bookmaking market to 20% by the year 2015.
Commenting on the discussions, Sportingbet representatives said that the talks could result in very promising results for both organizations concerned. The acquisition of Centre bet would, they say, advance the company’s “strategy of increasing its exposure to regulated markets and of geographic diversification.” The statement went on to say that the deal would enhance earnings in the first full year post-integration. All members of the industry will be monitoring developments very closely indeed in the months ahead.
