Lottomatica to Acquire SKS365
Author:
Muhammad Gregory
The Lottomatica Group has announced its acquisition of SKS365, one of Italy’s biggest iGaming and sports betting omnichannel operators. The acquisition will be done through a subsidiary of the Lottomatica Group, GBO SpA, and will cover 100% of SKS365 Malta’s share capital, with an enterprise value of €639 million. The deal will be financed through cash and additional debt to be borne by Lottomatica. Accounting for anti-trust and regulatory approvals, the acquisition is expected to be complete by the end of the first half 2024.
On the heels of its first revelation of financial results since its IPO and debut on the Italian Stock Market, Lottomatica has revealed that it will be acquiring 100% of SKS365. In the first two quarters of 2023, Lottomatica generated a gross gaming revenue of €2.8 billion. The acquisition announcement is another addition to a string of new developments at Lottomatica that has seen the company’s value surge since going public on May 3, 2023. As an omnichannel operator, SKS365 runs over 1000 retail sports betting points and has a robust online presence. PlanetWin365 and PlanetPay365 are among the biggest brands under the SKS365 umbrella, in addition to Calcio.com and the PlanetWin365 news portal.
Lottomatica and SKS365 are among the biggest gaming providers in Italy.
?Markus Spiske/Unsplash
Lottomatica is one of Italy’s largest players in the gaming market, with its presence diversified into slot machines, retail sports betting, and online gaming. Since its inception in 1990, it has become a multinational gambling entity. Lottomatica even manages several small to medium-scale lotteries, such as provincial and state lotteries in the United States, and associations with national lotteries across Australia, the Caribbean, Latin America, and Asia. Since gaining a strong foothold in its home geography of Italy, the company has expanded to become a multinational presence in the gaming sector. Like SKS365, Lottomatica is active in the sports betting, online gaming, and sports betting franchising sectors. It is strongest in the spread gambling sector, where it operates more than 3000 points of sale across the country, in addition to over 1400 gaming halls. As the industry leader in Italy, several well-known sub-brands such as Better, Goldbet, and Betflag operate as Lottomatica’s subsidiaries.
Furthermore, this strategic acquisition aligns with Lottomatica’s vision for global market leadership, capitalizing on emerging trends in the gaming industry. The integration of SKS365 enhances the company’s financial prowess and provides a solid foundation for technological innovation and customer engagement. Lottomatica’s commitment to synergy realization underscores its proactive approach to maximizing shareholder value and maintaining a competitive edge in the dynamic gaming landscape. As the industry evolves, Lottomatica stands poised to leverage the combined strengths of the acquisition, ensuring sustained success and prominence on the world stage.
SKS365 to propel Lottomatica’s next growth phase
In its press release, SKS365 issued a statement regarding its acquisition. “At SKS365, we are proud to become part of the Lottomatica Group. We could not have found a better partner to continue our vision for SKS365 with the brands PlanetWin365 and PlanetPay365. Many thanks to our shareholders, all employees, and partners developing under my leadership a highly successful omnichannel operator with a strong momentum in online sports betting and iGaming that is complementing our strong retail network. I am thankful to continue to lead the SKS365 team, and I am looking forward to working closely with Guglielmo Angelozzi and our new colleagues at Lottomatica”, said Alexander Martin, CEO of SKS365.
SKS365 currently has approximately 600,000 registered users and a network of around 1000 retail betting outlets. With a market share of 9.6% in online sports betting and 6.4% in the iGaming segment, the acquisition will allow SKS365 to expand its product and service offerings and gain new resources. The acquisition initially came as a surprise to the industry as early reports did not indicate Lottomatica’s interest in bidding for SKS365.
Lottomatica on A String of Strong Results
Recently, Lottomatica earned the distinction of launching the biggest IPO in Europe. With its listing on Euronext Milan, the company raised €600 million in the placement phase. If the over-allotment option is fully exercised, another €690 could be raised. The market capitalization at the IPO was €2.265 million, while the free float at admission stood at 26.5%. The company results for 2022 showed that it collected bets worth €22.8 billion, leading to a revenue of €1.4 billion. In Q1 2023, Lottomatica’s revenues rose 16% from the previous quarter, amounting to €389.3 million.
Playtech Misses Out on SKS365
Earlier this year, several rumors existed about the acquisition of SKS365 by Playtech instead of Lottomatica. According to Sky News, Playtech had opened talks over the company’s potential acquisition. It was suggested at the time that Playtech and Flutter had bid for SKS365, with the offers ranging from ￡500m to ￡600m. The reports also suggested that Lottomatica had declared an interest in making the acquisition, although neither party confirmed it. Only Playtech confirmed having held talks with SKS365, although it did not name which other parties were interested in the acquisition. Playtech issued a statement soon after the Lottomatica acquisition was announced. “The group will continue to take a prudent and rational approach to evaluating selected acquisition opportunities in line with its strategy to ensure appropriate exposure to attractive segments, both regionally and within product verticals,” Playtech said. Currently, Lottomatica shares are trading up 3.7% at €9.37 since the revelation of the acquisition.
