The Stars Group to buy Sky Betting & Gaming
The poker giant has agreed to buy Sky Betting & Gaming for US$4.7 billion in order to go deeper into the sports betting market.
Canada.- The Stars Group Inc. is set to take a major step into the sports betting market as it has just agreed to acquire Sky Betting & Gaming for US$4.7 billion. The deal will be completed through both cash and stock that will be transferred to Sky’s owners CVC Capital Partners and Sky PLC, the Toronto-based company revealed.
“Sky Betting & Gaming’s premier sports betting product is the ideal complement to our industry-leading poker platform,” The Stars Group CEO Rafi Ashkenazi said in a statement on Saturday, calling the acquisition “a landmark moment” for the company.
Under the agreement, The Stars Group will pay US$3.6 billion cash and close to 37.9 million newly issued common shares based on the closing price of its common stock on April 20th. The payment will be funded by the debt financing the company obtained of approximately US$6.9 billion, including US$5.1 billion of first lien term loans, US$1.4 billion of senior unsecured notes and a US$400 million revolving credit facility. Another portion of the proceeds will also be used to refinance the company’s existing first lien term loan and repay SBG’s outstanding debt, the statement said.
