Paddy Power Betfair said it had bought a 51% stake in Georgian online gambling company Adjarabet for £101m and had an option to acquire the rest of the company after three years.
The remaining 49% could be bought at a valuation equivalent to seven times 2021 Ebitda.
In 2018, Adjarabet generated revenues of 215m Georgian Lari (£64m) and Ebitda of GEL68m (£20m).
'This bolt-on acquisition is in line with our strategy of establishing podium positions in attractive online markets,' chief executive Peter Jackson said.
'Adjarabet's leading brand presence and strong management team has established it as the clear number one in the fast-growing, regulated online Georgian market.'