Lottomatica and Cirsa have announced a significant merger, set to create the second-largest publicly traded gaming and sports betting operator globally. This all-share deal, revealed on Wednesday, is projected to conclude by the second quarter of 2027, resulting in a combined entity with an estimated adjusted EBITDA of approximately €2 billion ($2.3 billion).
Cirsa’s implied pro forma value, prior to considering synergies, is expected to reflect a multiple of about 6x its anticipated 2026 EV/EBITDA, forecasted to be in the range of €800 million to €820 million based on the company’s latest earnings. A joint press release highlighted that the new company will enjoy “undisputed leadership positions” in both Italy and Spain, with plans for a dual listing on stock exchanges in Milan and Spain.
The merger will create a substantial addressable market of as much as €34 billion, encompassing various regions including Portugal, Mexico, and Colombia. Lottomatica's enhanced online and omnichannel offerings are anticipated to bolster Cirsa’s online gaming expansion.
Guglielmo Angelozzi, chairman and CEO of Lottomatica, emphasized that merging these two successful companies would lead to a more diversified business model with considerable growth potential. “With the combination of Lottomatica and Cirsa, 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,” he remarked.
Antonio Hostench, CEO of Cirsa, expressed enthusiasm for the collaboration, stating, “I am delighted to embark on this exciting journey together. The combination of Cirsa and Lottomatica creates a world-class diversified gaming leader with leading positions across its core markets and significant opportunities to accelerate profitable growth.”
Under the agreement, Lottomatica will absorb Cirsa in an EU cross-border statutory merger, with Lottomatica remaining the surviving entity. Upon completion of the merger, current Lottomatica shareholders are projected to control about 67.5% of the combined firm, while Cirsa shareholders will hold approximately 32.5%. Cirsa shareholders will exchange each of their shares for 0.668 newly issued Lottomatica shares.
Blackstone, Cirsa’s primary shareholder, is expected to become the largest shareholder of the resulting company, retaining about 24% of the shares. The merger anticipates generating pre-tax cash synergies of around €115 million annually from operational and interest cost savings, expected to be realized by the third year after the merger.
Guglielmo Angelozzi will take the roles of chairman and CEO of the new entity, while Laurence Van Lancker, Lottomatica’s deputy CEO and CFO, will hold the same titles in the joined company. Hostench and Cirsa CFO Antonio Grau will continue in their leadership roles at Cirsa.
Once the merger gains approval from Lottomatica’s general shareholders, the new board will consist of Lottomatica’s existing 11 directors, in addition to two new directors appointed by Blackstone.
The merger is aimed at establishing a “global gaming champion.” In FY2025, Lottomatica reported revenues of €2.26 billion, while Cirsa achieved revenue of €2.34 billion. The new organization is positioned to surpass competitors like Bally’s, Intralot, Entain, and Allwyn, making it the second-largest listed global operator in adjusted EBITDA, following only Flutter Entertainment.
Approximately 80% of the new entity’s EBITDA is projected to come from Italy and Spain, with a significant 97% of total EBITDA derived from markets where it is already a leader. Adjustments in online sports betting are expected to contribute 48% to the adjusted EBITDA, followed by distributed gaming at 27% and casinos at 25%.
According to Van Lancker, this merger will leverage the strengths of both businesses, fostering a larger and more varied company structure designed to enhance growth and create value for shareholders. The expanded group may facilitate up to €4 billion in capital returns within three years following the merger’s completion.
Cirsa’s aggressive acquisition strategy has seen the company enter the land-based casino sector in Portugal and the online slots market in Paraguay, among others. Since 2015, Cirsa has completed over 130 acquisitions, marking its rapid expansion in the industry.
