TORONTO, Dec. 3, 2019 /CNW/ -- The Stars Group Inc.
(Nasdaq: TSG) (TSX: TSGI) today announced 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. As part of this agreement, 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.
"I'm delighted to reach this agreement for our BetEasy
business," said Rafi Ashkenazi, Chief Executive Officer of The
Stars Group. "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," concluded Mr Ashkenazi.
The Stars Group currently expects to complete the minority
acquisition within 90 days following the earlier of either the
issuance of The Stars Group's audited financial statements for the
year-ended December 31, 2020 or the
completion of the previously announced board-recommended all share
combination of The Stars Group with Flutter Entertainment Plc. The
purchase price will be settled in cash unless it follows the
completion of the combination, in which case Flutter may elect to
settle in cash, Flutter ordinary shares or a combination of the
same.
In addition to the acquisition of the remaining interest, The
Stars Group will settle the performance, or earn-out, payment to
the minority shareholders for AUD$100 million. The performance
payment, which could have reached AUD$232 million, was subject to
certain performance conditions primarily related to BetEasy's
EBITDA.
Also as part of the agreement, The Stars Group will repay
AUD$56.9 million of outstanding BetEasy minority shareholder
loans.
Matt Tripp, BetEasy's CEO, will
provide ongoing leadership as the non-executive President of
BetEasy beginning January 1, 2020,
with Andrew Menz, who previously
served as BetEasy's Director of Strategy & Regulatory Affairs,
as his successor in the CEO role. Mr Menz was previously the Legal
and Corporate Affairs Director of Betfair Australia and was at the
forefront of the establishment of Responsible Wagering Australia, a
key group for Australia's online
wagering industry.
"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," said
Matt Tripp. "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," he concluded.
About 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.
About BetEasy
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.
Cautionary Note Regarding Forward Looking Statements and
Other Information
This news release may contain forward-looking statements and
information within the meaning of applicable securities laws,
including with respect to, among other things, The Stars Group's
acquisition of the minority interest in BetEasy and BetEasy's
future growth. Forward-looking statements can, but may not always,
be identified by the use of words such as "anticipate", "plan",
"continue", "estimate", "expect", "may", "will", "intend", "could",
"might", "would", "should", "believe", and similar references to
future periods or the negatives of these words and expressions.
These statements are based on management's current expectations and
are subject to a number of risks, uncertainties, and assumptions.
There can be no assurance that actual results will not differ
materially from those expressed or implied in forward-looking
statements. Undue reliance should not be placed on forward-looking
statements. Please refer to The Stars Group's most recent annual
information form and annual and interim financial statements and
management's discussion and analysis for more information about the
factors, assumptions and risks that may apply to The Star's Group's
forward-looking statements. Each forward-looking statement speaks
only as of the date hereof, and The Stars Group undertakes no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
For media inquiries, please contact:
Vaughan Lewis: ir@starsgroup.com
and press@starsgroup.com
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SOURCE The Stars Group