Flutter to obtain Sisal for $2.1bn
Published: December 30, 2021
Flutter Entertainment has announced the purchase of Sisal, an Italian gaming operator previously owned by CVC Capital Partners Fund VI. The transaction will amount to roughly $2.1bn and take place in Q2, 2022.
It follows Flutter’s November acquisition of Tombola, an online UK bingo operator. Sisal is a prominent operator that expects to accumulate EBITDA of $280m in the last twelve months. Nearly 60% of the amount comes from its online offering, with the rest coming from lottery and retail operations.
The new purchase will bring gradual growth during the first 12 months after the acquisition. Roughly 90% of Sisal’s 2021 EBITDA is gathered in Italy, while the rest comes from lottery operations in Morocco and Turkey.
The entire business employs about 2,500 people at the moment. CVC originally acquired Sisal Group in 2016 for $1bn. Sisal primarily concentrates on gaming and sports betting in Italy, operating games like Totip, SuperEnalotto and Totocalcio.
Flutter brands, including Betfair and PokerStars, will target the company’s retail channel. Moreover, Flutter’s proprietary gaming content will be available to Sisal’s casino.
Flutter has several strategic goals it wants to achieve with the acquisition of Sisal. They include securing the position in Italy by enriching the software portfolio for a combined online share of 20%.
Flutter anticipates it will enhance their exposure to the booming market, for Italy is the second-largest regulated gaming jurisdiction in Europe. Moreover, Flutter wants to utilize Sisal’s omnichannel offering and increase its customer database.
The proportion of Flutter’s revenue from regulated jurisdictions in Q3, 2021, was over 91%, the percentage to be further increased by this acquisition.
The enterprise expects to expand its global footprint with the help of this purchase. A proven management team from Sisal will add to Flutter’s talent pool, increasing the leadership experience.
Commenting on the acquisition, Peter Jackson, Flutter CEO, said:
I am delighted to add Sisal, Italy’s leading gaming brand, to the Group as we look to attain a gold medal position in the Italian market. For some time, we have wanted to pursue this market opportunity via an omnichannel strategy, and this acquisition will ideally position us to do so. Sisal has grown its online presence significantly in recent years, aided by its proprietary platform and commitment to innovation. I’m excited to see how Flutter can complement these capabilities through our scale, differentiated products and operational capabilities. We look forward to welcoming Francesco and the rest of the Sisal team to Flutter in 2022.
Flutter Entertainment is a global gaming and sports betting operator located in Dublin, with a rich library of market-leading operations and brands. The company has the vision to become an industry leader, delivering a thrilling and safe playing experience to its customers.
It combines innovation, technology and high quality to provide the best solutions. A wide range of talents and great experience in the team ensures efficiency and reliability.