The Stars Group Inc has reached an agreement with the minority shareholders of its Australian-based sports betting business BetEasy to acquire the remaining 20% interest in the company for AU$151 million.
The agreement, coming in the midst of a proposed US$12.2 billion mega-merger between The Stars Group and UK bookmaking giant Flutter Entertainment, includes an additional AU$100 million performance payment by the Canadian-based firm to minority shareholders. The Stars Group re-launched the BetEasy brand in August 2018 following its acquisition of a combined 80% stake in former Australian-facing sportsbooks CrownBet Holdings Pty Limited and William Hill Australia Holdings Pty Ltd.
“I’m delighted to reach this agreement for our BetEasy business,” said The Stars Group CEO Rafi Ashkenazi.
“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.”
Taking over as CEO of BetEasy from 1 January 2020 will be current BetEasy Director of Strategy & Regulatory Affairs Andrew Menz, with outgoing boss Matt Tripp to provide “ongoing leadership” on an interim basis as the company’s non-executive President.
The transaction is expected to take place within 90 days of either The Stars Group releasing its FY19 financial statements or completing its merger with Flutter.