Football pools operator Zetters yesterday entered the burgeoning spread betting market by agreeing a £20.4m reverse takeover of a US firm that specialises in making markets on financial products.

Zetters said it was buying US-based IFX for cash and shares and planned to target largely untapped spread-betting markets in Italy, France, Germany and Turkey.

Spread betting is one of the fastest growing forms of gambling and allows punters to bet a range of subjects including share price movements, football scores and political election results. British firms City Index, Financial Spreads and IG Index have all grown to meet demand in recent years, with the latter valued at around £145m when it floated on the stock market last month.

IFX was set up five years ago by Graham Wellesley, a descendent of the Duke of Wellington, and specialises in contracts for difference and spread bets on equity prices.

Zetters chairman Tony Wollenberg, one of the original founders of City Index, says IFX will hasten Zetters move away from its traditional and declining business of football pools and into a growth area of online betting.

"IFX has technology that we will be able to adapt to a number of different types of gambling, a proven profits record and strong management," he said.