Paddy Power to acquire remaining Sportsbet stake

(PRESS RELEASE) -- Paddy Power plc, an Ireland-based provider of fixed odds sports betting, has agreed to acquire the remaining 39.2% stake in Sportsbet Pty., Ltd., an Australia-based online sports and racing bookmaker, for AUD132.6 million ($132.36 million). The purchase consideration will be satisfied by the payment of AUD110.1 million ($109.9 million) in cash, by issue of AUD18.5 million ($18.4 million) of new Paddy Power shares and the assumption of an AUD4 million ($3.9 million) obligation to certain Sportsbet employees. An additional consideration of maximum AUD25 million ($24.96 million) is payable if 2013 earnings before interest, tax, depreciation and amortisation (EBITDA) exceeds AUD80 million ($79.86 million). The transaction is expected to close by the end of February 2011.