23rd Dec 2021 08:56
(Alliance News) - Flutter Entertainment PLC said it has acquired online gaming operator Sisal from CVC Capital Partners Fund for EUR1.91 billion, around GBP1.62 billion, in a bid to establish "a gold medal position" in the Italian market.
The Dublin-based gambling company, formerly known as Paddy Power Betfair, said the transaction is likely to complete during the second quarter of 2022 and is expected to be accretive to adjusted earnings in the first 12 months after completion.
Flutter said the acquisition would give it an 20% share of Italy's online gambling market when combined with its PokerStars and Betfair brands.
Flutter said it will pay cash for Sisal which will include the full repayment of Sisal's debt. Flutter has agreed additional debt facilities with Barclays Bank PLC to finance the acquisition.
Sisal is a Milan-based betting, gaming and lottery operator. In 2021, Flutter said Sisal expects to generate earnings before interest, tax, depreciation and amortisation of EUR248 million, with 58% coming from its online offering and the remainder coming from a combination of retail and lottery operations. Sisal expects to report revenue of EUR694 million in 2021.
Flutter said the acquisition will increase the company's exposure in Italy which it added was Europe's second largest regulated gambling market.
Flutter Chief Executive Officer Peter Jackson commented: "I am delighted to add Sisal, Italy's leading gaming brand, to the group as we look to attain a gold medal position in the Italian market. For some time we have wanted to pursue this market opportunity via an omni-channel strategy and this acquisition will ideally position us to do so. Sisal has grown its online presence significantly in recent years, aided by its proprietary platform and commitment to innovation.
"I'm excited to see how Flutter can complement these capabilities through our scale, differentiated products and operational capabilities."
Shares in Flutter were up 2.8% at 11,625.00 pence on Thursday morning in London, among the best performers in the FTSE 100.
By Heather Rydings; [email protected]
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