Flutter Entertainment to acquire 51% stake in MaxBet to boost growth in Serbia
Flutter Entertainment plc (“Flutter”) has sealed a game-changing deal by acquiring an initial 51% stake in MaxBet, Serbia’s second-largest omni-channel sports betting and gaming operator, in exchange for €141 million (£123 million) in cash. The icing on the cake is that Flutter retains the option to acquire the remaining 49% in 2029, securing a strategic foothold in a burgeoning market.
MaxBet: The Gateway to Fast-Growing Markets
MaxBet isn’t just an acquisition; it’s a launchpad for Flutter Entertainment into high-potential markets. With a strong podium brand, Flutter Entertainment is poised to accelerate its growth and claim the gold standard in the Balkans. The secret weapon? Leveraging the tremendous advantages offered by the Flutter Edge.
MaxBet’s Dominance in Serbia
MaxBet has conquered the Serbian market with its omni-channel prowess. Combining an expanding retail presence with a booming online sector (which grew by a staggering 25% annually over the last five years), MaxBet has emerged as a powerhouse. In the latest twelve months leading to June 2023, the company raked in a pro forma fully regulated revenue of €145 million, with 44% of it stemming from the online segment, along with an impressive Adjusted EBITDA of €32 million.
Flutter Entertainment Strategic Triumph
This acquisition is a slam dunk for Flutter Entertainment, aligning perfectly with its core M&A strategy. It not only cements Flutter’s position in rapidly growing regulated markets but also taps into Serbia’s potential—an attractive, regulated market with online penetration at just 35%, and an anticipated online compound annual growth rate of around 15% until 2025.
MaxBet: The Local Hero
MaxBet brings more than just numbers to the table. As Serbia’s second-largest operator, it commands a solid 20% online share, boasting over 400 retail outlets spanning four markets. With a well-established local brand and 95,000 average monthly online players, it’s a local hero worth investing in.
A Synergistic Partnership
The strong MaxBet management team and its 2,400 employees bring invaluable local market expertise, facilitating cross-selling and online expansion. This synergy is poised to create tangible revenue benefits, bolstered by the Flutter Edge, including digital marketing expertise, pricing and risk management capabilities, gaming content innovation, and scalable technology.
Awaiting Regulatory Approval
While this transformative acquisition is in the pipeline, it’s important to note that it remains subject to customary regulatory clearances. The expected closing date is set for Q1 2024.
Peter Jackson’s Enthusiasm
Peter Jackson, Flutter Entertainment Chief Executive, couldn’t contain his excitement, stating, “I am excited to announce the addition of MaxBet to the Flutter portfolio. This acquisition continues our progress against the strategic priorities we have set for our International division; to buy and build podium positions in regulated markets.” He sees MaxBet as an opportunity to replicate past successes and transform growth by combining local expertise with the power of the Flutter Edge.