What does Flutter do who bought Sisal (goodbye Borsa)
Irish gaming and betting group Flutter Entertainment bought Sisal for $ 1.9 billion. Facts, numbers and scenarios
No listing on Piazza Affari for Sisal, one of the main operators in Italy of betting, games and lotteries.
Flutter Entertainment, the largest online betting group in the world, announced the acquisition of 100% of Sisal from the CVC Capital Partners Fund, which had in turn acquired it in 2016, for 1.9 billion euros.
The all-cash deal is likely to close in the second quarter of 2022.
The Irish gaming giant, whose brands include Paddy Power and Sky Bet, then gets its hands on Sisal-run games like Totocalcio, Totip and SuperEnalotto. The company's retail channel will be targeted by existing Flutter brands PokerStars and Betfair, while Sisal's casino product will have access to Flutter's in-house gaming content.
As Bloomberg points out, The betting industry is rapidly consolidating, triggered by the liberalization of gambling laws in the United States. In November, Flutter signed a £ 402 million deal for online bingo operator Tombola Ltd in an effort to diversify its products and increase its online gaming presence in the UK.
The acquisition in Italy received market acclaim. On the London Stock Exchange, Flutter stock is currently up 2.21%.
All the details.
FLUTTER ACQUIRES THE ITALIAN SISAL
The deal “fully aligns the Market Group's strategy towards gaining to build leadership positions in regulated markets globally,” explains the Irish bookmaker holding in a statement.
Regarding the transaction, Flutter sees "tangible opportunities" for revenue synergies linked to the acquisition of Sisal, leveraging Sisal's retail channel to strengthen existing brands (PokerStars and Betfair) and improving Sisal's sports betting offering thanks to to Flutter's ability to manage risk and pricing.
Flutter expects cost synergies from the transaction to be approximately £ 10 million, linked to potential savings potential. The transaction will be financed through additional Flutter debt structures agreed with Barclays Bank.
CLOSING
The transaction is expected to close in Q2 2022 and is expected to have a positive impact on adjusted earnings for the first 12 months after closing.
THE ACCOUNTS OF SISAL
Sisal expects to generate an Ebitda of 248 million in 2021, of which 58% comes from its online offer and the rest from an offer of retail and lottery operations. About 90% of Sisal's Ebitda for 2021 is generated in Italy, while the rest comes from operations in Turkey and Morocco. The business now employs around 2,500 people.
Flutter also plans to increase its online customer base. Sisal's online revenues have grown by a compound annual rate of 34% since 2016.
WHAT FLUTTER ENTERTAINMENT DOES
Flutter operates some of the most recognizable sports betting, gaming and entertainment brands in the world, namely Paddy Power, Betfair ,, Sportsbet, TVG and Adjarabet. Much of the group's growth strategy is based on its FanDuel brand in the United States.
Flutter has over 6 million customers in over 100 countries.
The group is currently headquartered in Dublin in 10 states, but the company plans to expand to 19 states over the next 18 months.
THE PARTNERS
According to the marketscreener website, Australian investment fund Caledonia owns a 10.4% stake in Flutter Entertainment. Other shareholders include: Capital Research & Management Co., Massachusetts Financial Services Co., Citigroup Global Markets Ltd., FastBall Holdings LLC, The Vanguard Group, Inc., Capital Research & Management Co., David Power and Fidelity Management & Research Co .
THE TOP
Leading the group is President Gary McGann and CEO Peter Jackson.
THE BILLS
The company generated $ 902.89 million in revenue during the first six months of fiscal 2021, up 159% year-over-year.
The gambling group said quarterly revenue was $ 1.97 billion, up 12% from the previous year. Average monthly players increased 13% to 7.3 million. Revenue for the full year 2021 is expected to be between $ 1.8 billion and $ 2 billion.
THE FLUTTER STRATEGY
The bond with Sisal is the latest in a series of minor acquisitions Flutter has made since completing a £ 10 billion merger with Canada's Stars Group in October 2019, making it one of the largest gambling groups in the world.
In November he bought the British bingo company Tombola and in March he bought a majority stake in the Indian gaming startup Junglee Games.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/cosa-fa-flutter-che-ha-comprato-sisal-addio-borsa/ on Thu, 23 Dec 2021 15:29:16 +0000.