Flutter Entertainment has announced the acquisition of an initial 51% stake in Serbia’s number two omni-channel sports betting and gaming operation, MaxBet, for a cash consideration of €141m (£123m).

As part of the deal, Flutter, which owns Paddy Power, will have the opportunity to acquire the remaining 49% in 2029.

The part-acquisition will allow MaxBet to provide Flutter with the platform to access fast-growing markets via a strong brand, with opportunities to accelerate growth with expansion into the Balkans region.

Flutter said Serbia is an attractive, regulated market, valued at €700m in 2022, with relatively low online penetration of around 35%. Furthermore, it has expected online compound annual growth to 2025 of approximately 15%.

The entertainment firm added that MaxBet has built a strong omni-channel presence within its core Serbian market, having capitalised on the fast-growing online market, which grew by 25% on a compound annual basis over the last five years.

It boasts 2,400 employee with local market expertise, underpinning its online expansion, despite low levels of marketing spending.

Chief executive officer at Flutter, Peter Jackson, said: “I am excited to announce the addition of MaxBet to the Flutter portfolio. This acquisition continues our progress against the strategic priorities we have set for our international division; to buy and build podium positions in regulated markets.

“We believe MaxBet is an excellent opportunity to replicate the success we have achieved in markets like Georgia, India and Italy by acquiring a strong brand in a podium position, where we see a compelling opportunity to combine that extensive local expertise with the power of the Flutter Edge to accelerate and transform growth.”

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