Lottomatica Group S.p.A. announces that GBO S.p.A., a wholly-owned subsidiary of Lottomatica, has signed an agreement to acquire 100% of the share capital of SKS365 Malta Holdings Limited. SKS365 is a leading omnichannel operator in the Italian online and sports betting market, which can count on about 600 thousand customers registered online, a brand of great value ("Planetwin365" and "PlanetPay365") and a network of approximately 1,000 retail sports betting outlets. SKS365 has a market share of 9.6% in the iSports segment and 6.4% in the iGaming segment, and expects to generate euros 74m of EBITDA FY2023, of which approximately 70% Online and 30% Sports Franchise.

Through this acquisition, Lottomatica strengthens its leading position in Italy with a 28.3% share of the total online market, enriching its portfolio of brands and accelerating its growth profile thanks to a highly synergistic transaction. The Group expects to achieve cash cost synergies of euros 60m and revenue synergies of at least euros 5m by 2026.

SKS365 was valued in the context of this transaction with an Enterprise Value of €639 million, equivalent to a FY2023 EV/EBITDA multiple of 8.7x on a pre-synergies basis and 5.2x on a post-synergies basis. The transaction is expected to close by the end of the first half of 2024, subject to customary antitrust and regulatory approvals.

The transaction will be financed through a combination of available cash and additional debt, for which Lottomatica has already obtained a commitment for an amount of €500 million in the form of a bridge debt facility. Net leverage at closing is estimated to be around 2.8x on a pre-synergies basis and 2.6x on a post-synergies basis.

"We are thrilled to welcome SKS365 to our Group, one of the leaders in the gaming industry in Italy, led by one of the most respected management teams in the industry and the leadership of CEO SKS365 Alexander Martin. We are adding high-value and complementary brands to our portfolio, PlanetWin365 and PlanetPay365, and we are happy to work with Alexander and the entire team, and we will provide all the necessary support for the next phase of growth by leveraging the expertise of the extended group" said Guglielmo Angelozzi, CEO of Lottomatica Group.

"We are proud to become part of the Lottomatica Group. We couldn't have found a better partner to continue our vision for SKS365 with the PlanetWin365 and PlanetPay365 brands. I want to thank our shareholders, all employees and partners who have contributed, under my leadership, to the development of a successful omnichannel operator, characterized by strong momentum in the online sports and iGaming segments, which complement a successful retail network. I am delighted to continue leading the SKS365 team and I am thrilled to be working with Guglielmo Angelozzi and his new colleagues at Lottomatica Group" said Alexander Martin, CEO of SKS365.