The Stars Group Inc. has just disclosed an agreement with BetEasy minority shareholders, to obtain an additional 20% interest in the firm for AUD$151 million. The leading group has also reached the deal with Australian sports betting division, to clear performance payment for the 2018 acquisition of the first 80% of interest.
Reacting on the latest agreement, Chief Executive Officer of The Stars Group, Rafi Ashkenazi said:
“I’m delighted to reach this agreement for our BetEasy business. The launch of BetEasy through our acquisitions of CrownBet and William Hill Australia in 2018 created one of the leading operators in Australia and increased our exposure to a high-growth regulated market. Matt Tripp’s entrepreneurial spirit and vision has guided BetEasy since he founded the business and we are glad he will oversee the transition as non-executive President.”
The Group looks to finalize the minority purchase within 90 days, depending on one of the following occasions - issuance of its audited financial statements for the year which ends on December 31, 2020, or the conclusion of the board-recommended all share combination of its brand with Flutter Entertainment. According to the agreement, the purchase compensation will be made in cash unless it follows the completion of the combination when Flutter can choose to settle in cash, its ordinary shares or a combination of the previously mentioned methods.
The Stars Group is also looking to clear up the performance, or earn-out, compensation to the minority shareholders for AUD$100 million. As a reminder, the performance amount, which could have increased to AUD$232 million, was related to performance conditions connected to BetEasy’s EBITDA. Additionally, it is going to reimburse AUD$56.9 million of outstanding minority shareholder loans of BetEasy.
Starting from January 1, 2020, current BetEasy’s CEO, Matt Tripp, will become the non-executive President of the company. At the same time, BetEasy will name a new CEO Andrew Menz, who has previously worked in Betfair Australia on the position of Legal and Corporate Affairs Director.
Current CEO at BetEasy, Matt Tripp said:
“I’m pleased to see our long-term succession plan come to fruition. Andrew Menz brings deep commercial and regulatory experience which leaves BetEasy in a strong position to continue delivering profitable growth. I know that this business, which we founded back in 2013, is in very capable hands with a strong executive team and the backing of The Stars Group, who have been terrific partners and global leaders in this industry.”
The Stars Group is a top-notch provider of gaming products and interactive content. The company has millions of users worldwide and it focuses on several sectors including online, mobile gaming, poker, and casino. It holds some of the most powerful businesses including PokerStars, PokerStars Casino, BetStars, FOX Bet, BetEasy, Sky Bet, Sky Casino and more. Stars Group subsidiaries own licenses in more than 20 world jurisdictions.
BetEasy is, on the other side, the Australian provider of online and mobile gaming services. It supplies users with top-notch wagering chances and appears as a single Australian bookmaker which streams local thoroughbred, greyhound and harness racing chances.
Source:
“The Stars Group agrees to acquire BetEasy minority interest; Settles performance payment“, starsgroup.com, December 2, 2019.