Lottomatica and Cirsa have finalized a significant merger agreement that will create the second-largest publicly listed gaming and sports betting operator worldwide. The all-share deal, announced on Wednesday, is scheduled to conclude in the second quarter of 2027 and will form a combined entity projected to achieve a pro forma adjusted EBITDA of approximately €2 billion ($2.3 billion).
Cirsa’s implied pro forma valuation, excluding synergies, is about six times its anticipated 2026 EV/EBITDA, which is expected to be between €800 million and €820 million based on the operator's latest earnings report.
The merged company is expected to dominate the gaming markets in Italy and Spain, with plans for dual listings on both the Milan and Spanish stock exchanges. Its accessible market is projected to reach up to €34 billion, taking into account additional markets such as Portugal, Mexico, and Colombia.
Lottomatica's expertise in online and omnichannel gaming is anticipated to enhance Cirsa's growth in online gaming sectors. Guglielmo Angelozzi, chairman and CEO of Lottomatica, emphasized that this merger would create a more diversified enterprise with substantial growth opportunities. He stated, “With the combination of Lottomatica and Cirsa, two extremely successful companies, we create the undisputed leader in Italy and Spain, among the best gaming markets globally, complemented by leadership positions in other very high growth geographies.”
Antonio Hostench, Cirsa’s CEO, expressed enthusiasm about the merger, indicating that it would form a world-class leader in gaming with strong positions in core markets and ample potential for profitable growth.
Under the terms of the merger, Lottomatica will absorb Cirsa through an EU cross-border statutory merger, with Lottomatica as the surviving entity. Upon completion, shareholders of Lottomatica will own approximately 67.5% of the new entity's shares, while Cirsa’s shareholders will hold the remaining 32.5%. Each Cirsa shareholder will receive 0.668 new Lottomatica shares for every share they own.
Blackstone, Cirsa’s largest stakeholder, is set to become the biggest shareholder of the combined corporation, retaining about 24% of the share capital. The merger is anticipated to yield around €115 million in annual pre-tax cash synergies from operational and interest cost savings, expected to materialize by the third year after the merger’s completion.
Leadership for the merged entity will see Angelozzi continuing as chairman and CEO, while Laurence Van Lancker of Lottomatica will take on the role of deputy CEO and CFO. Leadership teams from Cirsa, including Hostench and CFO Antonio Grau, will remain in their positions.
Following the merger’s completion and the approval from Lottomatica’s general shareholder meeting, the board will maintain the current 11 directors from Lottomatica and add two new directors designated by Blackstone.
The newly formed entity aims to become a dominant presence in the global gaming industry. Lottomatica recorded revenues of €2.26 billion for FY2025, while Cirsa’s revenues for the same period were €2.34 billion. This merger will position the new company ahead of competitors such as Bally’s, Intralot, Entain, and Allwyn, as the second-largest listed operator globally by adjusted EBITDA, trailing only Flutter Entertainment.
The bulk of the combined company’s EBITDA, around 80%, is projected to derive from operations in Italy and Spain, with 97% coming from markets where it holds a leadership position. Online sports are expected to constitute 48% of adjusted EBITDA, followed by distributed gaming at 27% and casinos at 25%. Van Lancker stated that the merger would blend the strengths of both businesses, resulting in a larger, more diverse organization capable of accelerating growth and generating value. The merged group aims to distribute up to €4 billion in capital returns within three years post-merger.
Cirsa's aggressive acquisition strategy in recent years has included ventures into the land-based casino market in Portugal, acquiring a majority stake in Sociedade Figueira Praia, S.A., and expanding to Paraguay with the purchase of online slots operator Slots del Sol and a leading Peruvian operator, Apuesta Total, in 2024. As of June 2025, Cirsa has completed over 130 acquisitions since 2015.
