Lottomatica’s GBO subsidiary will pay €310m for the Italian online sports betting and gaming operator.
Italy.- The Italian lottery company Lottomatica has reached an agreement to buy the online sports betting and casino operator Betflag. It will pay €310m for 100 per cent of the operator’s share capital. It will pay the entire amount on completion, which is expected in days. It may pay an additional €50m in 2024 depending on Betflag’s performance next year.
It’s Lottomatica’s first acquisition since it was sold by IGT to Gamesnet Group in May last year. Gamesnet took on the Lottomatica name following the acquisition. Chief financial officer Laurence van Lancker had said in August that the company was on the lookout for acquisitions after it reported a rise in first-half revenue of nearly 350 per cent year-on-year to €801m
The company will finance the deal with escrow of proceeds from senior secured notes issued in September. Betflag will remain an autonomous brand but the acquisition is intended to expand Lottomatica’s presence across product verticals.
The company said: “This transaction allows Lottomatica Group to consolidate its presence in the Italian market, particularly strengthening its position in the online casino games sector. It 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.
“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 combine the respective know-how and expertise.”