23rd Apr 2018 06:31
LONDON (Alliance News) - Stars Group Inc said Saturday it has agreed to acquire Sky Betting & Gaming from CVC Capital Partners and Sky PLC in a cash and stock transaction valued at USD4.7 billion.
As per the terms of the acquisition agreement and based on the closing price of Stars Group's on Friday, the transaction has an enterprise value of about USD4.7 billion, of which USD3.6 billion is payable in cash and the remainder is payable in approximately 37.9 million newly-issued common shares. The new shares will represent about 20% of Stars Group's shares after the transaction and the anticipated acquisitions of CrownBet and William Hill Australia.
Stars Group said it estimates that the transaction will be neutral to adjusted earnings per share on a diluted basis in the first full year following its completion and have a positive impact thereafter.
Stars Group said it has obtained fully committed debt financing of approximately USD6.9 billion including USD5.1 billion of first lien term loans, USD1.4 billion of senior unsecured notes and a USD400 million revolving credit facility. The funded proceeds of USD6.5 billion will be used for the cash portion of the transaction consideration, refinancing the company's existing first lien term loan and repaying Sky Betting's outstanding debt.
Stars Group said it anticipates completing the transaction in the third quarter of 2018.
Sky Betting has the UK's largest active online player base and, with over 80% of revenue generated from mobile devices, is a leading mobile betting and gaming operator. In 2017, revenue was GBP624 million and adjusted EBITDA was GBP202 million, representing compounded annual growth rates of approximately 46% and 51%, respectively, over the prior two years.
Related Shares:
Sky