Lottomatica SPA has informed the Borsa Milan that it has settled on terms to acquire SKS365 Malta, the operating company behind the PlanetWin365 (sportsbook) and PlanetPay365 (arcade) brands, for an enterprise value of €639m.
The acquisition, confirmed today, means that Lottomatica SPA is set to become the outright largest omnichannel gambling group in the Italian market.
Lottomatica’s deal entails taking control of 1,000 retail points run by SKS365. These will be incorporated into its current portfolio, which consists of 3,000 betting points, 31 horse racing tracks, 19,800 VLTs, 67,000 AWP machines, and 120 gaming venues.
Dealmakers shared: “SKS365 holds a 9.6% market share in online betting and 6.4% in igaming. It’s projected to generate an EBITDA of roughly €74m in FY2023, with approximately 70% from online and 30% from the sports franchise.”
Significantly, Lottomatica aims to bolster its current online presence. Q3 reports have highlighted an increased Italian market share in online betting, reaching 20.4% (+3 ppts) and 21.7% for igaming (+4.5 ppts).
The transaction is anticipated to conclude in H1 2024, pending standard regulatory approvals. It will be financed through a mix of readily available cash and new debt. For this, Lottomatica has already secured a bridge debt facility worth €500m.
Lottomatica Group’s CEO, Guglielmo Angelozzi, stated, “We eagerly welcome SKS365, a top-tier player in the Italian gaming sector, to our group.”
“We are integrating robust and complementary brands like PlanetWin365 and PlanetPay365 into our portfolio and are fully committed to providing the requisite support during the next growth phase, leveraging the collective strengths of our expanded group.”
Dealmakers project that the acquisition of SKS365 assets will yield cash cost synergies of €60m and revenue synergies of at least €5m by 2026.
Before today’s announcement, there were rumblings regarding the potential sale of SKS365, with M&A interest from entities such as Lottomatica, Playtech, and Flutter Entertainment.
After numerous significant M&A transactions that have reshaped Italy’s gambling arena, SKS365 is now the only major gambling entity in the Italian market that hasn’t been acquired.
SKS365’s CEO, Alexander Martin, commented: “Joining the Lottomatica Group is a source of pride for us. We couldn’t envision a more fitting partner to carry forward our vision for SKS365, alongside the PlanetWin365 and PlanetPay365 brands.
“This deal is marked by a dynamic online sports and igaming landscape, supplemented by an efficient retail network. I’m enthusiastic about continuing to spearhead the team at SKS365 and am eager to collaborate with Guglielmo Angelozzi and my new colleagues at the Lottomatica Group.”