Lottomatica has agreed a deal to acquire Italian online sports betting and casino operator Betflag for €310m (£270m/$322m).
Under the deal, which was brokered by Lottomatica’s GBO subsidiary, the operator will take ownership of 100% of the share capital of Betflag.
Lottomatica said it expects to finalise the acquisition in the coming days, with the entire purchase price to be paid on the date of completion. A further €50m may also be paid in 2024 contingent upon Betflag’s financial performance in the 2023 calendar year.
The purchase will be financed with the release from escrow of proceeds from Lottomatica’s senior secured notes issued in September.
“The transaction allows Lottomatica Group to consolidate its presence in the Italian market, particularly strengthening its position in the online casino games sector and represents a key milestone for the group’s multi-brand strategy, aimed at ensuring full coverage of the different product verticals and the different player clusters,” Lottomatica said.
“Moreover, thanks to this acquisition and by virtue of the specific features of Betflag, which will continue to be a separate and autonomous brand, Lottomatica will further enrich the group’s brand portfolio and to combine the respective know-how and expertise.”
The acquisition represents Lottomatica’s first since it became a standalone business.
The group was created as a gaming multi-national IGT sold its Lottomatica-branded B2C operations to Gamesnet Group in May 2021. Gamesnet then adopted the Lottomatica brand.
Earlier this year, upon announcing its H1 results, Lottomatica chief financial officer Laurence van Lancker said the operator would consider acquisitions, but only if it sees the right opportunity.
“We are actively monitoring the market, assessing those assets with the same approach we have previously discussed,” he said at the time.
“We don’t want to do acquisitions for the sake of EBIDTA or the sake of growth, we want to have a profitable, sustainable and disciplined growth for the right conditions – but we keep on being very active in this space.”