The Stars Group has agreed a deal worth US$4.7bn (£3.4bn) to acquire Sky Betting and Gaming from CVC Capital Partners and Sky Plc.
The Toronto-listed company stated that the deal will create “the world’s largest publicly listed online gaming company” and gain traction within the UK sports betting market where SBG boasts 2m customers.
Rafi Ashkenazi, CEO at The Stars Group, said: “The acquisition of Sky Betting & Gaming is a landmark moment in The Stars Group’s history. SBG operates one of the world’s fastest growing sportsbooks and is one of the United Kingdom’s leading gaming providers.
“SBG’s premier sports betting product is the ideal complement to our industry-leading poker platform. The ability to offer two low-cost acquisition channels of this magnitude provides The Stars Group with great growth potential and will significantly increase our ability to create winning moments for our customers.”
The Stars Group, which recorded revenues up 13.6 per cent year-on-year of US$1.3bn (£0.93bn) in 2017, had under its former Amaya moniker formerly failed in a merger attempt with William Hill in October, 2016.
Leeds-based Sky Betting and Gaming’s unaudited annual revenue in 2017 was £624m, with adjusted EBITDA at £202m, representing compounded annual growth rates of 46 per cent and 51 per cent respectively, over the prior two years.
In a statement, The Stars Group said it aims to benefit from “greater revenue diversification and significantly enhanced exposure to sports betting” and an increased presence in regulated markets, particularly in the UK.
The Stars Group said SBG’s Yorkshire base will operate as a major hub of the enlarged group.
“We are delighted to join forces with The Stars Group,” said Richard Flint, Sky Betting and Gaming’s CEO. “We have had a fantastic last few years and would like to thank CVC and Sky for supporting us in becoming a leading online operator in the UK. This transaction allows us to offer our best-in-class products to a truly global audience. We’re excited about our future together.”
This year, The Stars Group has also announced acquisitions of CrownBet and William Hill Australia. The SBG deal is valued at US$4.7bn (£3.4bn), with US$3.6bn (£2.6bn) payable in cash and the remainder in newly issued common shares.
