William Hill, the largest UK bookmaker, agreed to buy Australia’s Tom Waterhouse N.T. pty Ltd. in a deal worth up to A$110 million ($101.4 million). The deal came just days after Ralph Topping, William Hill chief executive, called Sportingbet, which his company bought for £459 million ($704.9 million) in March, “the last significant asset in Australia”.
William Hill will pay A$34 million upfront for Tom Waterhouse and assume up to A$6 million in debt in the company which has been losing money. It will pay up to A$70 million more if Tom Waterhouse raises its earnings before interest and tax by A$10 million to A$30 million by 2015. Founder Tom Waterhouse will remain as managing director of the business. Topping said Waterhouse was selling the business as he faced a large investment in technology to expand; he will instead now be able to utilize William Hill’s systems. William Hill’s Australian business is tilted toward horse racing and high rollers while Tom Waterhouse is stronger in other sports.