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Paddy Power Betfair has announced that it has secured number one position in the “fast growing regulated online Georgian market,” via the purchase of a 51 per cent stake in Adjarabet for an initial cash consideration of £101m.

The organisation has also agreed a further stipulation, under the terms of which it expects to acquire the remaining 49 per cent after a period of three years, at a valuation equivalent to seven times of 2021 EBITDA.

In a media statement Paddy Power Betfair released further details of its latest deal: “This acquisition provides the group with exposure to two attractive, fast-growing, regulated markets.

“The online Georgian market is estimated to have grown at a CAGR of 40% from 2016 to 2018 to an estimated £180m of gross gaming revenue, with the nascent Armenian market providing a further growth opportunity.

“We believe that the combination of the market-leading brand and local operational expertise with Paddy Power Betfair’s technology, and leading sports capabilities, positions Adjarabet very well to capitalise on this opportunity.”

Adjarabet is the market leader within its jurisdiction with an estimated 40 per cent share of total online revenue, a key component of which it states as being an 86 per cent brand awareness amongst the Georgian population.

During 2017, the business launched in the developing regulated Armenian online market, winning approximately 10 per cent share by the end of 2018.

Peter Jackson, chief executive of Paddy Power Betfair, commented: “This bolt-on acquisition is in line with our strategy of establishing podium positions in attractive online markets.

“Adjarabet’s leading brand presence and strong management team has established it as the clear number 1 in the fast-growing, regulated online Georgian market.

“Together with our group’s technology and sports capabilities, we are confident that Adjarabet will be strongly positioned to continue to build on this success”.

Adjarabet is licensed to offer a full suite of online betting and gaming products in Georgia including casino, sports, poker and peer-to-peer games.