It is paying A$13m (?8.5m) in cash for the 9.8% stake. The remaining 39.2% of Sportsbet's shares remain subject to transaction arrangements announced on October 2.

They include a contingent consideration of A$10m subject to EBITDA exceeding A$26m and Paddy Power's call option to acquire any minority shareholding in 2012 or 2013.

With the latest deal, the implied enterprise valuation for Sportsbet is around A$185m, which compares with an implied EV of A$147m for Paddy Power's investments in the company last year.

In its November trading update, Paddy Power reported that from acquisition total amounts staked in its Australian business grew year-on-year in constant currency by 24% overall and by 47% in the online channel.

Paddy Power will issue its results for the year ended December 31 on March 2 and will provide an update on Sportsbet's current trading.

Story provided by Business Financial Newswire