Italian-facing bookmaker and gaming operator SKS365 announced that it has reached a definitive agreement to be acquired by Lottomatica Group S.p.A. Lottomatica plans to finance the deal with a combination of available cash and additional debt, with the agreement covering 100% of SKS365 Malta’s share capital and placing it at an enterprise value of €639 million ($678 million).
Subject to securing anti-trust and regulatory approvals, the acquisition is due to be completed in the first half of 2024. In addition, Lottomatica expects to achieve cash cost synergies of €60 million ($64.2 million) and revenue synergies of at least €5 million ($5.3 million) by 2026.
According to a press release, the deal will allow SKS365 to “accelerate its growth and strengthen its market position in the Italian gaming and betting industry.” The group currently has approximately 600,000 registered online customers, valuable brands, including Planetwin365 and PlanetPay365, and a network of about 1,000 retail sports betting outlets.
The company has a market share of 9.6% in the iSports segment and 6.4% in the iGaming segment and is expected to generate €74 million ($79 million) of EBITDA for its 2023 financial year, with 70% coming from online and 30% retail.
Guglielmo Angelozzi, Lottomatica CEO, commented: “We’re thrilled to welcome SKS365, one of the leaders in the industry, to our group in Italy. We add highly valuable and complementary brands to our portfolio. We will provide all the necessary support for the next phase of growth by leveraging the skills of the enlarged group.”
Alexander Martin, CEO of SKS365, said: “At SKS365 we are proud to become part of the Lottomatica Group. We could not have found a better partner to continue our vision for SKS365 with the brands PlanetWin365 and PlanetPay365.”
“Many thanks to our shareholders, all employees, and partners for developing under my leadership a highly successful omnichannel operator with strong momentum in online sports betting and iGaming that is complementing our strong retail network. I am thankful to continue to lead the SKS365 team and I am looking forward to working closely with Guglielmo Angelozzi and our new colleagues at Lottomatica,” he added.
Confirmation of the Lottomatica deal seemingly ends any hope Playtech had of acquiring SKS365, which in September confirmed it had opened talks over the potential acquisition of the Italian-facing operator. At the time, media reports suggested Playtech and Flutter had lodged bids for SKS365. These offers were believed to have been in the region of £500 million to £600 million.
Responding to news of the Lottomatica agreement, Playtech issued a statement acknowledging the deal and setting out its position. “The group will continue to take a prudent and rational approach to evaluating selected acquisition opportunities in line with its strategy to ensure appropriate exposure to attractive segments, both regionally and within product verticals,” Playtech said.
Original article: https://www.yogonet.com/international/noticias/2023/11/03/69505-lottomatica-reaches-agreement-to-acquire-sks365-for-678m
