Under the deal, Lottomatica’s GBO subsidiary has brokered an agreement for the operator to acquire 100% of the share capital of Betflag. The acquisition is expected to be finalized in the coming days, with the entire purchase price paid upon completion. Additionally, there is a possibility of paying an additional €50m in 2024 based on Betflag’s financial performance in the 2023 calendar year.
The purchase will be financed using the proceeds from Lottomatica’s senior secured notes issued in September, which will be released from escrow. This transaction allows Lottomatica Group to strengthen its presence in the Italian market and enhance its position in the online casino games sector. It is a significant milestone for the group’s multi-brand strategy, aiming to provide comprehensive coverage of different product verticals and player clusters.
The acquisition of Betflag will contribute to enriching Lottomatica’s brand portfolio while allowing the company to combine the respective knowledge and expertise. This represents Lottomatica’s first acquisition since becoming a standalone business, following the sale of their Lottomatica-branded B2C operations to Gamesnet Group in May 2021, after which Gamesnet adopted the Lottomatica brand.
In previous statements, Lottomatica’s CFO, Laurence van Lancker, expressed the company’s cautious approach to acquisitions. They are actively monitoring the market for the right opportunities, focusing on profitable, sustainable, and disciplined growth rather than pursuing acquisitions solely for the sake of EBITDA or growth.
