Lottomatica has agreed a deal to acquire sportsbook and online casino operator Betflag as it aims to update its product offering.
Under the provisions o the deal, Lottomatica’s subsidiary GBO SPA has agreed to pay a flat €310m cash fee for the operator.
The deal represents Lottomatica’s first M&A play since the heritage Italian gambling group was sold by IGT to the Gamenet Group conglomerate last summer for $950m.
The firm noted that at the end of Q3, Betflag had generated an EBITDA of €36m. Though a €310m transaction, there will be a further €50m in earnout payments, based on Betflag’s financial performance for the period of 2023-to-2024.
Acquiring Betflag has allowed the firm to “consolidate Lottomatica’s presence in Italy’s online gambling market” by “strengthening its position in the online casino games sector”.
Lottomatica also noted that “Betflag is licensed to operate all segments for Italian online gambling”, helping the group advance its new multi-brand strategy within a highly saturated Italian marketplace.
Following the deal’s closure, Betflag will act as an “autonomous brand to enrich the group’s brand portfolio”.
The transaction will be financed by the release of an escrow taken from the proceedings of Lottomatica’s senior secured notes that were issued on September 27, 2022.