Unibet Enters the Australian Market by Acquiring Betchoice
It is a huge jump forward for Unibet Group after signing an agreement to acquire Betchoice Corporation Pty Ltd, a leading Australian bookmaker. Not only did they enlarge their empire, but they also extended their grasp to the Australian market because of the acquisition. The agreement, according to a press release, allows the Unibet by Australia’s Northern Territory Racing Commission the following:
- Provides access to the fast growing Australian online market;
- Represents a solid platform from which to invest further and gain market share;
- Positions Unibet well for the anticipated opening of live betting products in Australia at some stage in the future;
- Provides Unibet with horse racing capability which can be leveraged further across the group.
According to Henrik Tjärnström, the CEO of Unibet, “This strategic acquisition gives Unibet immediate access to the regulated Australian market, which is currently open to sports betting and horse racing. We intend to rebrand the business quickly to Unibet. Betchoice already has a strong offering and market position in horse racing and through Kambi, Unibet has the opportunity to enhance the quality and performance of Betchoice’s sports betting offering and so to deliver revenue growth and margin improvements.”
Tjärnström also added, “In addition to benefit from the already existing Australian product offering, the acquisition of Betchoice will provide Unibet with a platform to facilitate other gambling services and opportunities should market conditions continue to improve.”
Unibet will acquire Betchoice for AUD$20 million (GBP 13.6 million) as stated in the deal that would be signed by the two companies. Mark Morrisey, the co-founder and chairman has an earn-out included in the money that will be paid by Unibet and the best thing is that he is slated to stay after the deal’s completion.
Morrisey said that they are delighted to be part of the wider Unibet Group. “There is a substantial market opportunity in Australia and with Unibet’s expertise in marketing and risk management, together with its market-leading sports betting offering, I am confident that we can increase substantially our market share and establish Unibet as one of the leading brands in Australia.
Unibet will rebrand the Betchoice platform to Unibet after a short transition period, and will “invest significantly in improving the Australian product portfolio and in marketing to establish the Unibet brand in the fast growing Australian market.”
The big step by Unibet will surely make them earn bigger revenue due to the huge market acquired by the company. The acquisition is expected to be a huge success provided that both of the companies will function as one, complimenting each other with their current strengths. Unibet is already looking forward to serving the Australian market with great deals.
[Source: Poker News]
