|32Red has announced it has acquired Bet Direct, one of the largest independent internet and telephone betting businesses in the UK, for £12.5 million. In addition, the company has placed over 5 million shares with certain institutional investors at 120p a share. The aim is to raise upwards of £6 million to fund the acquisition. The rest will be funded from new bank facilities and existing cash reserves.|
“The acquisition of Bet Direct fits the strategic objectives of 32Red extremely well providing a much enlarged customer database and the ability to offer the full portfolio of betting and gaming products through a variety of distribution channels,” said Ed Ware. CEO of 32Red. “Our combined UK focus has enabled both management teams to identify areas of marketing cross-over, areas for review and customer recruitment and retention opportunities.”
32Red hopes that the acquisition will enhance earnings to the end of the year December 31 2007. In the meantime, the company is also hoping that it will help consolidate their position in the market.