In a strategic financial maneuver, Gamma Intermediate has successfully divested a 6.4% stake in Lottomatica for a striking €152 million. Despite this significant transaction, Gamma Intermediate continues to hold a controlling interest in the gaming giant, maintaining 65.4% ownership.
Demonstrating shrewd financial acumen, Gamma Intermediate structured the sale at an attractive price of €9.50 per share through an accelerated bookbuilding process, appealing primarily to institutional investors. This carefully orchestrated sale, notably, did not include a public offering in any jurisdiction.
In terms of transaction logistics, the anticipated final settlement is poised to take place on or about January 22nd. With future prospects in mind, Gamma Intermediate has committed to a 90-day lock-up period for its residual stake, an indication of its long-term investment approach towards Lottomatica.
The recent divestiture comes on the heels of a bold acquisition by Lottomatica—securing 100% of the share capital of the Italian operator SKS365, a tactical move aimed at cementing Lottomatica’s stature within the Italian market and broadening its portfolio of brands. The acquisition, valued at an impressive €639 million in enterprise value, signifies investment in a complementary business that is synergistic to Lottomatica’s growth narrative, with the transaction projected to close in the first half of 2024. To facilitate this ambitious acquisition, Lottomatica is poised to issue and vend notes valued at €500 million.
SKS365, distinguished for its robust online ecosystem and an extensive network of roughly 1,000 retail sports betting outlets, is anticipated to be a highly valuable and congruent addition to Lottomatica. With PlanetWin365 and PlanetPay365 among the brands encompassed in the deal, Guglielmo Angelozzi, Lottomatica’s chief executive, expressed confidence in the strategic fit of SKS365 within the group’s diverse portfolio.
The successful acquisition of SKS365 was not a clear run, with other industry titans such as Playtech and Flutter also exhibiting interest. Yet, Lottomatica emerged as the victor, having maintained a tactical silence until a definitive agreement was in place with SKS365.
This series of strategic decisions comes amid a time of financial prosperity for Lottomatica, which celebrated both revenue and earnings upswings in Q3 2023. This marked the company’s first full fiscal quarter subsequent to its initial public offering in April. Building on its fiscal success, Lottomatica reported buoyant results for the first half of the year, leading to an upwards revision of its year-end financial guidance. It now forecasts full-year revenue to fall between €1.63 billion and €1.69 billion, with adjusted EBITDA of €570 million to €590 million.
As the financial year nears its end, the industry and investors alike are keenly awaiting Lottomatica’s Q4 and cumulative annual reports. The timeline for the release remains undisclosed, keeping the market in anticipation as to whether Lottomatica will meet or exceed its ambitious financial targets.
In recapitulating the significance of this divestment and acquisition strategy, it’s clear that Lottomatica is navigating through an eventful phase that is pivotal for the company’s growth trajectory. Gamma Intermediate’s decision to sell off a portion of its holdings reflects a strategic rebalancing act, while its ongoing majority stake in Lottomatica underscores its continuous commitment to the long-term prospects of the gaming conglomerate. Simultaneously, with its decisive acquisition of SKS365, Lottomatica is set on an expansion course that will potentially fortify its market position and broaden its footprint in the competitive world of gaming and betting.
