Paddy Power plc and Sportsbet Pty Limited have acquired International All Sports Limited (IAS) for US$35 million.
Formed in 1988, Paddy Power is the largest provider of online betting and gaming services in Ireland and a leading provider of such services in the UK. Operations are divided between online, retail and telephone services to customers in Ireland and the UK. In 2008, amounts staked exceeded US$2 billion. Online services generate over 70% of operating profit. Paddy Power is publicly quoted and capitalized at US$800 million.
Sportsbet is an Australian licensed sports bookmaker. It accepts wagers on Australian and international horse, harness and greyhound racing as well as all manner of local and international sporting, political and entertainment events. Wagering turnover exceeds US$780 million.
IAS, through its subsidiaries, engages in betting on racing. It also offers bookmaking and information technology services to the wagering industry, primarily in Australia. The company provides wagering investment services, horse racing totalizator services and analysis rating services. It also operates information portals that provide racing and sports news, hot tips, form guides, and racing results and highlights. IAS is a subsidiary of Sportsbet Pty Ltd. The company was incorporated in 1994 and is based in Melbourne, Australia.
Oaklins' teams in Australia and Ireland advised the buyer in this transaction. During the course of negotiations between Paddy Power plc and Sportsbet Pty Limited in which Paddy Power acquired an initial 51% shareholding with the balance to be acquired through an earnout, Sportsbet identified the publicly listed International All Sports Limited (IAS) as a potential target and amassed a 20% shareholding on market. Subsequent to Paddy Power completing its transaction with Sportsbet, Sportsbet agreed to enter into a scheme of arrangement with IAS pursuant to which Sportsbet would acquire IAS for cash (implying an enterprise value of US$35 million) to be funded by Paddy Power and by Sportsbet's minority shareholders.
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