International law firm Lovells has acted for SoftBank, a Japanese technology and investment company, on the acquisition of up to a 23 per cent stake in Betfair, the betting exchange operator.

SoftBank group and associated entities will buy between 18 and 23 per cent of the fully diluted share capital of Betfair.

The acquisition of the Betfair stake will take place by way of an offer to shareholders of The Sporting Exchange, Betfair's parent company, for between 15 and 20 per cent of the shares. The Sporting Exchange will then offer SoftBank group and associated entities an additional 3 per cent in the group as part of the deal.

Corporate lawyer Mark Goodrich who is based in Tokyo commented: "We are pleased to have advised SoftBank on this deal which gives them a foothold in the fast growing online gambling market with a highly reputable company. This represents the largest transaction on which Lovells has advised SoftBank to date."

Freshfields advised Betfair.