Lottomatica Group SpA has announced that its wholly-owned subsidiary GBO SpA has signed an agreement to acquire 100 per cent of the share capital of SKS365 Malta Holdings Limited.
Through the deal, Lottomatica SPA would become the outright largest omnichannel gambling group in the Italian market, taking on SKS365’s 600,000 registered online users, the Planetwin365 and PlanetPay365 brands and a 1,000 sports betting shop retail network.
A statement on the deal read: “SKS365 has a market share of 9.6 per cent in isports and 6.4 per cent in igaming and is expected to generate an EBITDA of approximately €74m in FY2023, of which approximately 70 per cent online and 30 per cent sports franchise.”
With the transaction – which values SKS365 at €639m – Lottomatica strengthens its position in Italy with an online market share of 28.3 per cent. The group estimates that it will achieve cash cost synergies of €60m and revenue synergies of at least €5m by 2026.
“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,” commented Guglielmo Angelozzi, CEO of Lottomatica Group.
“We add to our portfolio strong and complementary brands, PlanetWin365 and PlanetPay365, and we look forward to working with Alexander and the team, and we are committed to provide all the support needed in the next phase of growth, leveraging the combined capabilities of the enlarged group.”
Expected to be completed in H1 2024 and subject to customary competition and regulatory approvals, the acquisition will be financed with a combination of available cash and new debt, for which Lottomatica has already obtained a bridge debt facility of €500m.
In September, Playtech confirmed that it had an interest in acquiring SKS365. However, following Lottomatica’s announcement, the group declared that it would “continue to take a prudent and rational approach” to evaluating acquisition opportunities in line with its strategy to “ensure appropriate exposure to attractive segments, both regionally and within product verticals”.
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.”