Sporting Index, the sports spread-betting company, has completed its second private equity-backed management buy-out (MBO) in almost as many years as the company targets growth through acquisitions and international expansion.
The company has been bought by HgCapital from Duke Street Capital in a £75.8m deal. Duke Street bought the firm back in March 2003 for £53m.
The current Sporting management team, led by Richard Glynn, chief executive, will retain a “meaningful stake” in the company.
Sporting is the leading sports spread-betting company with a customer base of around 45,000 or about 70% market share.
The company hopes to “build a broader-based betting and gaming group” with sources close to the deal suggesting acquisitions could happen “quite quickly”.
It will also be looking to expand abroad with the Nordic regions, Germany and Italy as immediate targets.
There had been a “major amount of interest” from gaming companies, egaming companies and private equity groups once Duke Street decided to sell the business after a structural review. Duke Street had always intended to review its holding ahead of next year’s Football World Cup in Germany.
Hg has a strong record of investing in the leisure sector and until recently was an investor in Paddy Power.
“We are delighted to be working with HgCapital,” said Glynn.
“It has a long and successful track record of working alongside leisure-related businesses. Its leisure team has demonstrated an excellent understanding of the potential of the business and shares our vision for the on-going growth of the group.”
source : egr magazine
