The year-long speculation that Ladbrokes (LAD) could make a move for privately-owned betting exchange Betdaq was finally confirmed by recent news that the companies are hammering out a deal thought to be worth around £30m. If successful, it will be the fifth prospective deal Ladbrokes has attempted in the past two years as it tries to update its technology to compete with rivals William Hill and Paddy Power.
Acquisition of Betdaq would be primarily about acquiring a new IT capability. The exchange is a direct competitor of Betfair and, though not profitable, would give Ladbrokes' product offering a boost, while in the process stopping Betfair luring away prospective customers. Interestingly, Betdaq's owner, Irish tycoon Dermot Desmond, already owns around 2 per cent of Ladbrokes' shares.