Lottomatica's CEO Guglielmo Angelozzi characterized the company's merger with Cirsa as a "low-risk proposition" during an investor call on Wednesday. This collaboration aims to establish the second-largest publicly listed global gaming and sports betting operator, with a projected pro forma adjusted EBITDA of around €2 billion ($2.3 billion).
Angelozzi, who will lead the merged entity, emphasized that the deal is expected to be low-risk due to the steady growth patterns both Lottomatica and Cirsa have demonstrated over recent years. From the first half of 2024 through to the first half of 2026, both companies anticipate revenue growth rates of 13% for Lottomatica and 11% for Cirsa.
“The combined entity will be able to deliver the same rate of growth and the same rate of shareholder distribution, but with a larger pro forma free float and liquidity,” he explained. Angelozzi noted that stakeholders can anticipate stable growth, capital returns, and significant benefits from new market opportunities and online ventures alongside existing synergies.
Cirsa’s CEO Antonio Hostench shared similar optimism, stating, "On our side, we see this as a great opportunity because as Guglielmo said, there is no overlap between the companies, almost no overlap. We just see creating one of the biggest groups in the world in gaming terms." Hostench highlighted that Lottomatica’s long-term strategy is appealing and that the merger poses minimal risk for their team.
The merger will be executed through an EU cross-border process, with Lottomatica designated as the surviving entity. When questioned about previous cross-border mergers and acquisitions that fell short, Angelozzi pointed out that Cirsa is well-managed and indicated that past attempts often involved turning around lower-tier assets.
“This case is unique as it involves a solid group that has performed well for a decade, with no need for turnaround,” he stated, underscoring Cirsa's strong market presence.
Lottomatica and Cirsa plan to be publicly listed in both Spain and Italy, where each is a market leader. Italy is expected to contribute 57% to the combined group's pro forma adjusted EBITDA, while Spain is projected at 23%, with the rest of the world accounting for 20%. Post-merger, the two countries are expected to generate 80% of the group's EBITDA.
The merger investor deck indicates that online betting and gaming will become the group’s largest sector, making up 48% of the combined pro forma adjusted EBITDA. This is followed by distributed gaming at 27% and casinos at 25%. Angelozzi views Italy and Spain as prime markets for growth, especially noting opportunities in Spain, which he described as having a more fragmented and developing online sector, with Cirsa capturing about 6% of that market.
Angelozzi asserted that, regarding competition in Italy, they do not foresee any regulatory concerns or revenue losses due to brand overlap. He expressed confidence about maintaining market concentration levels below 40% in relevant segments. “We do not expect revenue attrition. These are complementary brands and models, and we have a history of managing multi-brand operations in Italy,” he remarked, ensuring that their diverse portfolio aligns well with the merger.
