Home In-Depth Lottomatica completes SKS365 acquisition

Lottomatica completes SKS365 acquisition

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Lottomatica Group announced the completion of its acquisition by GBO SpA, a subsidiary that operates in Italy. SKS365 Malta Holdings.

This deal was agreed on in November 2023 and places a value of EUR639m ($685m) (£548m/£685m) on the enterprise. Lottomatica claims that the deal covers SKS365 Malta’s entire share capital.

Lottomatica stated at the time that the acquisition strengthened its position on the Italian market. The company also stated that the purchase would expand their brand portfolio, and increase its growth.

SKS365 is a major online player, with PlanetWin365 and PlanetPay365 as its main brands. It is an omnichannel operator that also operates approximately 1,000 retail betting sports points.

Guglielmo Angleozzi, CEO of Lottomatica last year said that these brands were “highly valued and complementary” for the portfolio. Lottomatica will support SKS365’s next growth phase, he said.

Angelozzi stated that the acquisition of these complementary and highly valued brands will enhance our existing portfolio. We will leverage the combined skills to provide the support needed for the next growth phase.

Lottomatica confirmed that the project is complete and will provide an updated FY2024 guide that incorporates SKS365’s expected results. The results will be provided as quickly as possible.

Lottomatica finances the purchase using a mix of cash available and debt.

Martin leaves SKS365 as CEO

Alexander Martin announced his resignation as the CEO of SKS365 after confirmation of acquisition.

He said that it was an “honor” to be the CEO of this business in a LinkedIn post. Martin assumed the CEO role in December of 2019.

Martin announced that he would be leaving his position as the CEO of the business due to “inherent changes” in the role. It has been a great honor to be the CEO of SKS365. We have created a successful and excellent company together. We have consistently grown our financial results, which is a testament to the unwavering dedication we show towards excellence.

“I wish you all the best for the future as you continue to travel with the Lottomatica Group.” SKS365’s membership in the group offers a solid platform that will allow for continued growth.

Playtech fails to win the SKS365 race

Lottomatica defeated industry titan Playtech in the final acquisition of SKS365.

Playtech announced in September of last year that it was in talks with the operator about a possible deal. At the same time, media reports suggested that Flutter also made a bid. However, this information was not confirmed. The offers were thought to be in the range of PS500m – PS600m.

Playtech had acknowledged other interested parties, but refused to reveal their names. Playtech said that it was not certain that SKS365 would succeed in its acquisition efforts. This proved to be the case.

Lottomatica Positive 2023:

Lottomatica reported in February that its revenue for 2023 was EUR1,63bn, an increase of 17.0%. The company says that this “exceeded the expectations” of its initial public offer (IPO).

In April, the company filed for an IPO at Euronext Milan. The price range set here was EUR9 to EUR11 and led to a total market cap of EUR2,67bn.

The IPO had a long-lasting effect on Lottomatica’s profits. It reported EUR2,8bn gross gaming revenue (GGR) in its results for the third quarter of 2023. The full year results were positive and built on the initial success.

A pro forma basis, adjusted EBITDA is expected to rise 16.6% by 2023 or EUR580.4m. Net profit was down to EUR74.2m from EUR78.4m due to higher expenses.

Lottomatica originally stated that it expected revenue between EUR1.80bn to EUR1.84bn in 2024. The adjusted EBITDA will be EUR625m to EUR645m with a projected 53.0% from the online segment.

This is about to change now that the SKS365 agreement has been completed.

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