Lottomatica Group, a prominent player in the iGaming industry, is set to reinforce its presence in the Italian market. The group, through its subsidiary GBO S.p.A., has finalized an agreement to acquire 100% of SKS365 Malta Holdings Limited.
SKS365 has appeared as a powerful omnichannel name in the Italian online and sports betting stage. This purchase brings under Lottomatica's wing a company boasting around 600,000 registered online users and owning renowned brands such as Planetwin365 and PlanetPay365.
Additionally, SKS365 operates a widespread network of approximately 1,000 sports betting shops. In terms of market share, SKS365 holds 9.6% in iSports and 6.4% in iGaming. The company is predicted to generate an EBITDA of roughly €74 million in FY2023, with online activities constituting about 70% of the earnings, and sports franchises making up the remaining 30%.
For Lottomatica, this strategic asset is more than just a financial transaction. It is a means to maintain its leadership role in the Italian market. The pro forma online market share is anticipated to rise to 28.3%, breathing new life into the brand portfolio and greatly extending the growth opportunities.
The potential of gaining synergies is also evident, with an estimated €60 million in cash cost synergies and an additional €5 million in revenue synergies by 2026.
The deal places a value of €639 million on SKS365, assessed with an Enterprise Value (EV)/EBITDA FY2023 multiple of 8.7x pre-synergies and 5.2x post-synergies.
The acquisition is set to conclude in the first half of next year, subject to customary regulatory clearances and competition approvals.
Guglielmo Angelozzi, CEO of Lottomatica Group, said: ''We are excited to welcome to our Group SKS365, a top performing player in the Italian gaming sector and led by one of the most respected management teams in the industry, under the leadership of Alexander Martin. We add to our portfolio strong and complementary brands, PlanetWin365 and PlanetPay365, and we look forward to working with Alexander and the team, we are committed to providing all the support needed in the next phase of growth, leveraging the combined capabilities of the enlarged group.''
Alexander Martin, CEO of SKS365 added: "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 developing under my leadership a highly successful omnichannel operator with a 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.''
''BREAKING NEWS: Lottomatica Group acquires SKS365'', europeangaming.eu, November 2, 2023.