Guglielmo Angelozzi, the CEO of Lottomatica, characterized the company's merger with Cirsa as a “low-risk proposition” during an investor call held on Wednesday. The merger is projected to create the second-largest publicly listed gaming and sports betting operator worldwide, boasting a pro forma adjusted EBITDA of about €2 billion ($2.3 billion).
Angelozzi, who will serve as CEO of the unified entity, expressed confidence in the deal's stability during the call, pointing out the consistent revenue growth both companies have achieved in recent years. From the first half of 2024 to the first half of 2026, Lottomatica and Cirsa are anticipated to grow their revenues at compound annual growth rates (CAGRs) of 13% and 11%, respectively.
“The combined entity will be able to deliver the same rate of growth and shareholder distribution, but with a larger pro forma free float and liquidity,” Angelozzi noted. He continued to emphasize that the merger would allow for stable growth and capital returns without introducing additional risks. In addition to this stability, he mentioned the potential benefits from new market opportunities and significant synergies.
Echoing Angelozzi's sentiments, Cirsa CEO Antonio Hostench stated, “On our side, we see this as a great opportunity because there is almost no overlap between the companies. We envision creating one of the largest groups worldwide in gaming terms.” Hostench expressed optimism about aligning with Lottomatica’s long-term strategic plan, suggesting that the merger presents minimal risk and significant advantages for both teams.
Lottomatica plans to incorporate Cirsa through an EU cross-border merger, positioning Lottomatica as the surviving company. Addressing potential concerns regarding past cross-border mergers that fell short of expectations, Angelozzi underscored that Cirsa is already a well-managed company. He explained, “In many cases, past M&As involved second-tier assets that required extensive adjustments. This time reflects a different situation, as we are dealing with a cohesive group that has been successfully operating for a decade. There’s no turnaround necessary here.”
Upon completion of the merger, the combined entity will trade on both Spanish and Italian stock exchanges, where Lottomatica and Cirsa hold significant market positions. Currently, Italy contributes 57% of the combined group’s pro forma adjusted EBITDA, while Spain accounts for 23%, with the Rest of the World making up the remaining 20%. Following the merger, it is anticipated that 80% of the merged company’s EBITDA will derive from these two markets.
Notably, the investor presentation indicated that online betting and gaming would likely emerge as the largest segment for the combined group, contributing 48% of the pro forma adjusted EBITDA in the first half of the year. Distributed gaming follows at 27%, with casinos at 25%. Angelozzi highlighted that Spain and Italy rank among the best global markets for growth. In Spain, he estimated that Cirsa commands about 6% of the online market, indicating a relatively fragmented and less mature market compared to Italy. “These two markets are expected to continue their positive growth trajectory, with Spain outpacing Italy,” he stated.
Angelozzi commented on Cirsa’s deep market understanding and robust retail platform, which could be advantageous for online business. When asked about potential regulatory challenges due to Cirsa's presence in Italy, Angelozzi expressed confidence. "Regarding Italian antitrust considerations, we don’t foresee issues since Italy is not the focal point of this deal, and it won’t alter the concentration levels within the country, remaining below 40% in each relevant market. We do not anticipate any revenue attrition. The brands and models are complementary, and we have successfully managed a multi-brand business in Italy before,” he added.
