Apollo Global Management will provide funds for new acquisitions.
The Czech Republic.- Private equity firm Apollo Global Management has reached a deal to invest €500m in European lottery giant Sazka Group and KKCG, the investment body behind the group.
Subject to regulatory approval, Apollo Global will invest the funds in a new wholly-owned subsidiary of KKCG, Sazka Entertainment AG, which will own 100 per cent of Sazka Group. The deal is expected to complete next year.
Sazka said the funds would be used for new acquisitions in Europe and North America, particularly in lotteries.
Sazka Group chairman, Karel Komárek, said: “Our business is entering into a new era and this investment and strategic partnership will support our long-term expansion plans.
“In partnership with a strong US investor, Sazka Group is well positioned to expand in Europe, the US and other potential regions, continuing to focus on lottery and complementary gaming verticals.
“I am convinced that the gaming industry is one of the most promising sectors for the future and Sazka Group aspires to be a global player in this sphere.”
Apollo partner, James Kim, said: “Sazka Group has a very successful track record of organic and inorganic growth and we believe this investment, coupled with our sector expertise and relationships, will help the management team achieve their strategic growth plans in Europe and around the globe.”
Meanwhile, Sazka is in the race for the next licence to run the UK National Lottery.