Flutter Entertainment is set to acquire Sisal. This is after a deal between the online betting and gaming giant and the Italian operator went through for an estimated €1.91 billion. The deal is set to more than double Flutter’s market share in Italy to about 20%.
The Italian firm is also in the retail and online gaming business in Morocco and Turkey. It’s also in the bidding to run the UK National Lottery. The Turkish business is a joint venture with Demirören Holding, which is a local business. CVC Capital Partners is the current owner, having acquired it in 2016.
But Sisal will move homes to Flutter Entertainment after a €1.91 billion acquisition deal. This amount will be paid in cash. Plus, the company is set to repay the firm’s entire debt. Flutter is set to finance the entire deal using ist debt facilities. But the deal will have to wait for regulatory approvals before sailing through, with the date set to be in quarter 2 of 2022.
Sisal is not only involved in lottery activities but also in the betting and gaming business in Italy. It has also extended its reach in Spain after sealing a partnership deal with Sportnco. The latter was also part of another acquisition deal by Gaming Innovation Group earlier in the week.
The deal to acquire Sisal is set to expand Flutter’s reach in Italy. Sisal commands a market share of over 12% in the sports betting sector. It also controls about 10% of the online casino sector.
Flutter’s chief executive commented on the acquisition deal. Peter Jackson expressed their delight to add Sisal, saying the acquisition will allow it to get a gold medal position in Italy. The executive went on to state that the company has been hunting the Italian market through the omnichannel angle.
The iGaming operator said combining its existing Sky Bet and Betfair brands with Sisal will take its online market share in Italy to over 20%. Sisal’s retail offering will also boost the combined force to push for enhanced diversification. It will also protect the brands against the gambling ad ban prevailing in Italy.
Italy’s iGaming market continues to grow according to Flutter. Revenue from Sisal’s operations grew by an average of 34% every year since 2016. Jackson stated that Sisal has grown its presence in the online market in the past few years. This is thanks to its commitment toward innovation as well as its proprietary platform. Jackson expressed their eagerness to see how the company can integrate these capabilities through its differentiated products as well as operational capabilities.
Flutter stated the partnership with Sisal will allow it to increase its revenue collection from regulated markets. Sisal expects €248 million in earnings before interest, tax, depreciation, and amortization in 2021. This is from net gaming revenue of €694 million.