The Stars Group Inc. has publicized that it has agreed with the minority shareholders of BetEasy, its Australian-based sports betting business, to acquire the remaining 20% interest in the company for AUD$151 million. The Stars Group also agreed to pay AUD$100 million to settle the previously disclosed performance payment under the agreements for its 2018 acquisition of the initial 80% interest as per agreement.
Chief Executive Officer of The Stars Group, Rafi Ashkenazi commented on latest agreement:
“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.”
More About Plan
The Group looks to settle down 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. As per agreement the purchase compensation will be made in cash except it follows the completion of the arrangement when Flutter can choose to settle in cash, its ordinary shares or a combination of the formerly mentioned methods.
The Stars Group is also looking to resolve the performance, or earn-out, compensation to the minority shareholders for AUD$100 million. As a notice, the performance amount, which could have risen to AUD$232 million, was related to performance conditions connected to BetEasy’s EBITDA. Moreover, it is going to refund AUD$56.9 million of exceptional minority shareholder loans of BetEasy.
Current BetEasy’s CEO, Matt Tripp, will become the non-executive President of the company Starting from January 1, 2020. 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.”
About the Brands:
The Stars Group
The Stars Group is a provider of technology-based product offerings in the global gaming and interactive entertainment industries. Its brands have millions of registered customers globally and collectively are leaders in online and mobile betting, poker, casino and other gaming-related offerings. The Stars Group owns or licenses gaming and related consumer businesses and brands, including PokerStars, PokerStars Casino, BetStars, Full Tilt, FOX Bet, BetEasy, Sky Bet, Sky Vegas, Sky Casino, Sky Bingo, and Sky Poker, as well as live poker tour and event brands, including the PokerStars Players No Limit Hold’em Championship, European Poker Tour, Asia Pacific Poker Tour, PokerStars Festival and PokerStars MEGASTACK. The Stars Group is one of the world’s most licensed online gaming operators with its subsidiaries collectively holding licenses or approvals in 22 jurisdictions throughout the world, including in Europe, Australia, and the Americas. The Stars Group’s vision is to become the world’s favorite iGaming destination and its mission is to provide its customers with winning moments.
BetEasy is a leader in online and mobile wagering in the Australian market and is majority owned by The Stars Group. Through proprietary technology and innovative interfaces and applications, BetEasy provides its customers with a category-leading wagering experience and is the only corporate bookmaker in Australia to stream every Australian thoroughbred, greyhound and harness racing to its customers. BetEasy is the Official Wagering Partner of the NBA and the AFL, Premier Wagering Partner of thoroughbred broadcaster Racing.com and is a founding member of Responsible Wagering Australia which advocates for enhanced consumer protection and sporting integrity outcomes in the Australian wagering industry.