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Paddy Power Betfair (LON:PPB) was one of the biggest risers of the FTSE-100 after it acquired a controlling stake in Adjarabet, the largest online betting and gaming company in Georgia with a 40% market share.
The UK-listed bookmaker acquired a 51% stake for an initial cash consideration of £101 million, thereby valuing Adjarabet at £198 million and the acquisition at 9.9x EBITDA. As part of the agreement, Paddy Power has an option to purchase the remaining 49% of the business after three years at a valuation equivalent to 7x EBITDA.
The acquisition was made in a move to expand further into high-growth markets.
The shares advanced by 2.6% to 6,430p, as at GMT 13:57.