Lottomatica and Cirsa have announced a significant merger that will create the second-largest publicly listed gaming and sports betting operator globally. This all-share agreement was made public on Wednesday and is set to close in the second quarter of 2027, resulting in a consolidated entity with a projected pro forma adjusted EBITDA of roughly €2 billion ($2.3 billion).
Cirsa’s pro forma valuation, prior to accounting for synergies, is estimated at around six times its anticipated 2026 EV/EBITDA, forecasted to fall between €800 million and €820 million according to the company's latest earnings.
According to a joint press statement, the new entity will command uncontested market leadership in both Italy and Spain and is poised to be dual-listed on the Milan and Spanish stock exchanges. The combined group's potential market reach could extend to €34 billion when factoring in all accessible markets, including regions such as Portugal, Mexico, and Colombia.
Lottomatica's capabilities in online and omnichannel operations are expected to enhance Cirsa's entry into the online gaming sector. Guglielmo Angelozzi, chairman and CEO of Lottomatica, emphasized that this merger creates a more diversified business with substantial growth prospects. "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," he remarked.
Cirsa’s CEO, Antonio Hostench, expressed enthusiasm for the merger, 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."
The merger will see Lottomatica absorb Cirsa through an EU cross-border statutory merger, with Lottomatica maintaining its identity as the surviving entity. Following the completion of the merger, Lottomatica shareholders are projected to retain approximately 67.5% of the capital, while Cirsa shareholders will hold the remaining 32.5%. Specifically, each share of Cirsa held will yield 0.668 newly issued shares of Lottomatica. Furthermore, Blackstone, the largest stakeholder in Cirsa, is expected to emerge as the largest shareholder in the newly formed company, holding around 24% of the share capital.
The merger is anticipated to generate approximately €115 million in annual pre-tax cash synergies, stemming from operational and interest cost savings, with these benefits expected to be realized in the third complete year post-merger.
In terms of leadership, Angelozzi will take on the roles of chairman and CEO of the combined company, supported by Lottomatica’s deputy CEO and CFO Laurence Van Lancker, who will also assume the same roles. Hostench and Cirsa’s CFO Antonio Grau will continue to oversee their respective teams at Cirsa.
Once the merger is finalized and has received approval from Lottomatica's general shareholders meeting, the board of the combined entity will comprise the current 11 Lottomatica directors, along with two additional directors appointed by Blackstone.
The merger aims to establish “a global gaming champion,” as outlined in their detailed presentation. In the fiscal year 2025, Lottomatica reported revenues of €2.26 billion, while Cirsa reported revenues of €2.34 billion. This merger would position the new entity ahead of competitors like Bally’s, Intralot, Entain, and Allwyn, making it the second-largest listed gaming operator globally, only outpaced by Flutter Entertainment in terms of combined adjusted EBITDA.
Approximately 80% of the expected EBITDA is anticipated to be derived from operations in Italy and Spain, with 97% originating from markets where the company is already a leader. Online sports betting is projected to constitute 48% of the adjusted EBITDA, followed by distributed gaming at 27%, and casino operations at 25%. Van Lancker indicated that the merger would harness the strengths of both companies, resulting in a larger, more diversified organization capable of enhancing growth and value creation. The expanded group could facilitate capital returns of up to €4 billion within three years following the merger’s completion.
Cirsa has pursued an aggressive acquisition strategy in recent years, recently entering the Portuguese land-based casino sector with the acquisition of a majority stake in Sociedade Figueira Praia, S.A., which operates Casino Figueira. Earlier, Cirsa expanded into the Paraguayan market by purchasing the online slots operator Slots del Sol and took over Apuesta Total, a leading operator in Peru, in 2024. Since 2015, Cirsa has completed more than 130 acquisitions as part of its growth strategy.
