Flutter agrees Sisal acquisition

Flutter agrees Sisal acquisition
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Flutter Entertainment has announced a £1.6bn agreement to acquire Italian operator Sisal, placing the Sky Bet and Paddy Power owner in prime position for the National Lottery concession.

 

Flutter Entertainment is to buy online gaming group Sisal from CVC Capital Partners in a £1.6bn purchase agreement, giving the company a 20 percent share of the Italian online gaming market.

The deal could see the Sky Bet and Paddy Power owner immediately bolster its annual revenue by £590m, while securing a strong position in the competition for the UK National Lottery concession.

“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,” said CEO Peter Jackson.

“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.”

Sisal’s online business witnessed a 34 percent growth since 2016, with underlying earnings projected to hit £211m for this financial year, despite its retail division welcoming 9.5 million customers per month, as opposed to just 300,000 online.

The company is also responsible for operating the SuperEnalotto lottery, and holds the tender for the national lottery of Morocco, with its international growth plans now focused on the UK National Lottery, a concession set to be renewed in 2023.

An advisory board was formed in October in order to oversee the bidding process, chaired by Baroness Karren Brady, and including Lord Victor Adebowale and Lord Ed Vaizey.

“Each member brings unrivalled experience across key areas of industry and society that are central to our strategy and will help us to deliver the best possible solution for The National Lottery,” said Sisal CEO Francesco Durante at the time.

Following the acquisition announcement on 23 December, Flutter saw its shares on the FTSE 100 rise 2.1 percent.


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