Flutter Entertainment said it has agreed to acquire Sisal for €1.91bn (£1.62bn), giving it a leading online and retail presence in Italy.
It will acquire the company from CVC Capital Partners in a deal that it expects to complete in the second quarter of next year, the London-listed Flutter said today.
Sisal got about 90 percent of its earnings before interest, tax, depreciation and amortisation this year from Italy, with the rest coming from regulated lottery operations in Turkey and Morocco, the company said.
The company expects to generate about €248m in EBITDA this year, with around 58 percent coming from online operations and the rest from its retail and lottery operations.
Sisal’s online offering plus Flutter’s own PokerStars and Betfair brands will give it a 20 percent market share in Italy, the company said.
Italy’s online gambling penetration has been growing quickly, from 10 percent in 2019 to 20 percent this year, Flutter said.
Advertising restrictions and the prevalence of cash deposits also make Italian retail gambling attractive, the company said.
“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,” Peter Jackson, Flutter chief executive, said.
“Sisal has grown its online presence significantly in recent years, aided by its proprietary platform and commitment to innovation,” Jackson said.
"We are very proud of the success achieved by Sisal and its transformation since our acquisition in 2016,” said Giampiero Mazza, managing partner at CVC Italy.
“Through heavy investment in its digital competencies, Sisal has become Italy's leader in online gaming while also growing its international operations.”
CVC acquired Sisal from Permira and Apax Partners for about €1bn. The operator employs about 2,500 staff.
Flutter’s brands include Paddy Power, Betfair, FanDuel in the US, PokerStars, Sky Betting and Gaming in the UK, Adjarabet in Georgia and Australia’s Sportsbet.
In November, it acquired UK online bingo specialist Tombola for an enterprise value of £402m.