Australian business Sportsbet, in which Irish bookmaker Paddy Power holds a majority stake, has agreed to buy International All Sports Limited for €22.4 million (AUS40 million).
Sportsbet already held a 19.98 per cent share in the business which trades online and through telephone channels. All Sports Ltd reported pretax profit of €3.4 million for the year ending June 30th, 2008.
The purchase is due for completion in October.
In a statement Paddy Power said Sportsbet’s existing shareholders have agreed to subscribe for new equity in Sportsbet to fund the purchase.
Paddy Power said the maximum it will pay will be is €9.1 million.
Paddy Power’s chief executive Patrick Kennedy said the deal underpins the ability of Sportsbet to build its market position.