Lottomatica SPA has agreed to acquire Italian online sportsbook and casino operator Betflag (Betflag.it) – in a move to refresh its online gambling portfolio.
The acquisition was undertaken by Lottomatica subsidiary GBO SPA, which agreed on terms to acquire Betflag outright for a valuation of €310m.
The deal represents Lottomatica’s first M&A play since the heritage Italian gambling group was sold by IGT Plc to the Gamenet Group conglomerate last summer for $950m.
Dealmakers disclosed that as of September 2022, Rome-based Betflag had generated an EBITDA of €36m.
The transaction will further carry €50m in earnout payments, based on Betflag’s financial performance for the period of 2023-to-2024.
The acquisition was authorised to “consolidate Lottomatica’s presence in Italy’s online gambling market” by “strengthening its position in the online casino games sector”.
Of significance, Lottomatica noted that “Betflag is licensed to operate all segments for Italian online gambling”, helping the group advance its new multi-brand strategy within a highly saturated Italian marketplace.
Lottomatica informed Betflag would be maintained as an “autonomous brand to enrich the group’s brand portfolio”.
The transaction will be financed by the release of an escrow taken from the proceedings of Lottomatica’s senior secured notes that were issued on September 27, 2022.