Ladbrokes Buys Out Its Scandinavian Partner

Ladbrokes plc has acquired Sponsio Ltd, a company that is currently its online betting and gaming partner in Sweden, Norway, Denmark and Finland.

Ladbrokes says that per capita spending on gambling in the Nordic region is amongst the highest in Europe, and it is keen to strengthen its position there. The cost to Ladbrokes is an initial £36,000,000 (c. $70m) with the potential for a further £14,000,000 (c. $27m) if future growth targets are met in the region. The acquisition is said to be earnings-enhancing in the first year of ownership.

The connection with Sponsio Ltd goes back to 2001 when Ladbrokes plc signed a partnership agreement with the Nordic company to expand the Ladbrokes business in the region. Today, the Nordic countries added together represent the biggest earning region for Ladbrokes eGaming outside of the UK.

Once the acquisition is completed, the current Managing Director of Sponsio Ltd, Douglas Roos, will head up Ladbrokes' Scandinavian division.

Ladbrokes says that it aims to build on the historic success of the partnership with the Sponsio team and expand the range of localised betting and gaming opportunities available to customers across the region.

John O'Reilly, Managing Director of Ladbrokes Remote Betting and Gaming, said:

"Working with Sponsio has enabled Ladbrokes to become one of the leading online betting and gaming companies in the Nordic region. Having benefited from their local expertise, we are now consolidating our Nordic operations and will continue to drive successful online growth throughout Scandinavia."

Bertil Knutsson, on behalf of Sponsio Ltd stated:

"We are proud of both the success that we have achieved and the brand recognition that Ladbrokes now commands in the Nordic region. We feel that this deal will help Ladbrokes increase its market share and serve its Nordic customers even better."

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