BetEasyâ€™s Last 20% Sold To The Stars GroupTia Winter | 4 December 2019
Details of the Agreement
As part and parcel of this agreement, the Stars Group has additionally undertaken to pay AU$100 million to settle a performance payment previously disclosed under the agreements for its acquisition in 2018 of the initial 80% interest. This performance payment, which could have reached AU$232 million, was subject to certain performance conditions related to BetEasy’s Earnings Before Interest, Taxes, Depreciation, and Amortisation. The Group will also repay AU$56.9 million towards the bookmaker’s pending minority shareholder loans.
Both Parties Happy With the Deal
Rafi Ashkenazi, Chief Executive Officer of the Stars Group, spoke of his delight at being able to come to an agreement for their BetEasy business. He spoke of the launch of this majority-owned entity through his company’s acquisitions of William Hill Australia and CrownBet last year as having created one of Australia’s leading operators and increasing his firm’s exposure to a regulated market exhibiting high growth.
Ashkenazi made specific mention of Matt Tripp, former Chief Executive Officer and founder of BetEasy, having an entrepreneurial spirit and vision, and said that he was glad that Tripp would be in place to supervise the transition in the position of Non-Executive President.
The Group has stressed that at the moment it’s expected that the minority acquisition will be completed within 90 days. This will follow either the supply of its audited financial statements for the year ending December 31, 2020, or the realisation of the previously announced all share combination with Flutter Entertainment, recommended by the board.
Tripp will be providing on going guidance as of January 1, 2020, along with Andrew Menz. Menz previously served as BetEasy’s Director of Strategy and Regulatory Affairs and will be taking over the role of CEO.
Tripp stated that he was very pleased to see that his firm’s long-term plans for succession have come to fruition, saying that Menz brings deep levels of commercial and regulatory experience to his new role. Tripp said that this means that BetEasy is in a strong position to keep delivering profitable growth margins. He went on to say that this business, begun in 2013, is in very capable hands thanks to the executive team’s strength and the Group’s backing.