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- Flutter Entertainment (OTCPK:PDYPY) has acquired Italy's leading online gaming operator Sisal from CVC Capital Partners Fund VI for a consideration of €1.913B/£1.62B which is payable in cash and in full on completion of the transaction.
- Sisal is a leading betting, gaming and lottery operator headquartered in Milan, ~90% of Sisal's 2021 EBITDA is generated in Italy with the balance coming from regulated lottery operations in Turkey and Morocco.
- The addition of Sisal diversifies Flutter's product and geographical footprint and increases the proportion of Flutter's revenue from regulated markets which in Q3 2021 was over 91%; increases Flutter's recreational customer base with the addition of 300K highly engaged online average monthly players and over 9.5m retail customers.
- The combination of Sisal with Flutter's existing online Italian presence through PokerStars and Betfair will result in a combined online share of 20%.
- Additionally, the deal to bolster Flutter's existing talent pool by adding a proven management team that will continue to lead the business and who have sought to take a leadership position in the promotion of safer gambling in Italy.
- The acquisition will be financed by way of additional Flutter debt facilities, agreed with Barclays Bank PLC.
- The cost synergies from the transaction are expected to be circa £10m, principally due to potential procurement savings and the revenue synergies will exceed cost synergies over time.
- The deal is likely to complete during Q2 2022 and is expected to be accretive to adjusted earnings in the first 12 months post-completion.