The group recently announced its acquisition of 100% of the share capital in an Italian-facing operator, SKS365. This deal is valued at €639.0m and is expected to be completed in the first half of 2024, pending anti-trust and regulatory approvals.
To prepare for the acquisition, Lottomatica has outlined plans for a major bond issue. This includes floating rate senior secured notes due in 2030 and 7.125% senior secured notes due in 2028, issued under the indenture of existing €565.0m 7.125% senior secured notes due in 2028. The details of the split between floating rate and additional notes will be communicated upon completion of the offering.
As part of the agreement, Lottomatica has also secured additional commitments for revolving cash borrowings, amounting to €50.0m. These funds will be used to help finance the SKS365 purchase, covering acquisition fees, certain costs, and expenses associated with the deal. The funds will be initially held in escrow accounts until the acquisition is finalized.
The acquisition of SKS365 aligns with Lottomatica’s long-term growth strategy, aiming to strengthen its position in Italy and expand its brand portfolio. SKS365, an omnichannel operator with a strong online presence and approximately 1,000 retail sports betting points, brings valuable and complementary brands such as PlanetWin365 and PlanetPay365 to Lottomatica’s portfolio. Lottomatica CEO Guglielmo Angelozzi expressed support for SKS365’s future growth under the group’s guidance.
The deal with SKS365 concluded Playtech’s pursuit of acquiring the Italian operator. Although Playtech initially expressed interest in September, Lottomatica’s involvement was only confirmed once the deal was reached. Playtech has not yet indicated whether it will reopen talks or continue pursuing an agreement.
Lottomatica reported strong revenue and earnings growth in Q3, which marked its first full quarter after the IPO. Following a successful first half and Q3 growth, Lottomatica increased its full-year guidance, expecting revenue between €1.63bn to 1.69bn and adjusted EBITDA of €570m to €590m.
