HgCapital, a private equity investor, announced that it has agreed to acquire Sporting Index from Duke Street Capital for a total cash consideration of £75.8 million.
Founded in 1992, Sporting Index is the market leader in sports spread betting in the UK with a market share of approximately 70%.
The company has recently expanded its product portfolio by developing a unique range of spread betting games, including BetHiLo a product targeting relative newcomers to the spread betting sector.
“Over the past 3 years, Sporting Index’s management team has built a market leading business which they have developed significantly, most notably in terms of distribution and product development. Over 70% of all bets are now placed via the internet and the company continues to develop its distribution channels to meet changing customer needs, as evidenced by the recent developments of its Sky TV and mobile telephone channels. The recently launched range of spread betting games is already showing good signs of growth,” said Ben Hewetson, Director and Head of Leisure Investments at HgCapital.
HgCapital will now work closely with Sporting Index’s management team, led by Chief Executive Richard Glynn, to leverage the strength of Sporting Index’s core business, both organically and by acquisition, to build a broader-based betting and gaming group domestically and internationally.
“We’re in the leisure market, not just the gambling market, and we want to build a group which faces up to the competition, while concentrating on the spread betting offer,” said Richard Glynn, Chief Executive of Sporting Index.
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