Lottomatica and Cirsa have announced a major merger that promises to establish the second-largest publicly traded gaming and sports betting operator in the world. This all-share agreement, revealed on Wednesday, is anticipated to finalize in the second quarter of 2027, resulting in a combined entity projected to achieve a pro forma adjusted EBITDA of approximately €2 billion ($2.3 billion).
Cirsa’s estimated pro forma value, prior to any synergies, is around six times its expected 2026 EV/EBITDA, which is forecasted to be between €800 million and €820 million, based on the company’s latest earnings report.
The joint press statement highlighted that the merged organization will have “undisputed leadership positions” in both Italy and Spain, operating under dual listings on the Milan and Spanish stock exchanges. The market accessible to the new group could reach up to €34 billion, incorporating regions like Portugal, Mexico, and Colombia.
Lottomatica's extensive online and omnichannel offerings are expected to bolster Cirsa's growth in online gaming. Guglielmo Angelozzi, Lottomatica’s chairman and CEO, stated that this merger would yield a more diversified business with ample growth prospects. "By combining Lottomatica and Cirsa, we establish a leader in Italy and Spain, two of the foremost gaming markets globally, while also maintaining prominent positions in other rapidly growing regions," he remarked.
Cirsa’s CEO, Antonio Hostench, expressed enthusiasm for the partnership, asserting that it will form a world-class gaming leader with significant growth opportunities across core markets.
Upon completion, Lottomatica will merge with Cirsa via an EU cross-border statutory merger, with Lottomatica emerging as the surviving entity. Post-merger, current Lottomatica shareholders are expected to control about 67.5% of the new company, while Cirsa’s shareholders will hold the remaining 32.5%. Each Cirsa shareholder will be allocated 0.668 newly issued Lottomatica shares for each share they own in Cirsa.
Notably, Blackstone, Cirsa's largest shareholder, is set to become the largest stakeholder in the merged firm, retaining approximately 24% of the capital. The merger is projected to generate around €115 million in pre-tax cash efficiency gains annually from operational and interest savings, achievable by the third year post-completion.
Leadership for the new entity will see Angelozzi take on roles as both chairman and CEO. Laurence Van Lancker, currently Lottomatica's deputy CEO and CFO, will continue in the CFO position. The leadership at Cirsa, including Hostench and CFO Antonio Grau, will remain intact. After the transaction is approved by Lottomatica’s general shareholder meeting, the board will feature the existing 11 Lottomatica directors along with two additional directors nominated by Blackstone.
In terms of market positioning, the merger is designed to create a “global gaming champion.” Lottomatica reported €2.26 billion in revenue for FY2025, while Cirsa achieved €2.34 billion in the same period. The combined entity will surpass competitors like Bally’s Intralot, Entain, and Allwyn to become the second-largest listed operator globally, trailing only Flutter Entertainment in adjusted EBITDA.
Approximately 80% of the new company’s EBITDA is derived from operations in Italy and Spain, with 97% originating from markets where it holds a leading position. The breakdown of EBITDA contributions includes 48% from online sports, 27% from distributed gaming, and 25% from casinos. Van Lancker noted that this merger will amalgamate the strengths of both organizations, enhancing overall capabilities and fostering growth that will create substantial value. The enlarged group aims to facilitate up to €4 billion in capital returns over the three years following the merger's completion.
Cirsa has been actively pursuing acquisitions, most recently entering Portugal’s land-based casino scene by acquiring a majority stake in Sociedade Figueira Praia, S.A., the operator of Casino Figueira. Previously, Cirsa expanded into Paraguay by acquiring the online slots operator Slots del Sol and secured the leading Peruvian operator Apuesta Total in 2024. Since 2015, Cirsa has completed over 130 acquisitions, reflecting its aggressive growth strategy.
