Flutter plans to acquire Sisal, a leading gaming brand in Italy, for €1.91bn. The acquisition cost will be paid in cash and includes full repayment of Sisal’s debt. The deal will be financed through Flutter’s debt facilities.
Sisal holds licenses for the Italian national lottery, as well as lotteries in Morocco and Turkey through a joint venture with Demirören Holding. The company is also a major player in the UK’s National Lottery bidding process.
In addition to its lottery activities, Sisal operates as a prominent betting and gaming operator in Italy and has expanded into Spain through a partnership with Sportnco.
The acquisition will allow Flutter to establish a strong presence in the Italian market. Sisal consistently reports a market share of over 12% in sports betting and close to 10% in online casino. By combining Sisal with its existing Betfair and Sky Bet brands, Flutter projects that its online market share would exceed 20%.
The deal will also diversify Flutter’s revenue streams and provide protection against Italy’s ban on gambling advertisements. Furthermore, Flutter expects to benefit from Sisal’s online growth, with average annual revenue growth of 34% since 2016.
The acquisition aligns with Flutter’s strategy to increase revenue from regulated markets. Sisal expects to achieve earnings before interest, tax, depreciation, and amortisation (EBITDA) of €248m in 2021, from net gaming revenue of €694m.
Francesco Durante, the CEO of Sisal, expressed excitement about joining Flutter, emphasizing the opportunities for further growth and strengthening their position in the market.
CVC Capital Partners, the current owner of Sisal, praised the company’s transformation into a leading digital and international gaming business. CVC Italy managing partner Giampiero Mazza also expressed confidence in Flutter as a fantastic new partner for Sisal’s future.
