Gamma Intermediate has successfully sold 16 million shares of Lottomatica, which represents a 6.4% stake in the Italian company. Despite the sale amounting to €152m, Gamma Intermediate still holds a majority stake of 65.4% in Lottomatica.
The deal was completed at a price of €9.50 per share and was carried out through an accelerated bookbuilding process exclusively for institutional investors, with no public offering in any country. The final settlement is expected to take place on or around January 22, and Gamma Intermediate has agreed to a 90-day lock-up for its remaining shares in Lottomatica.
Following the sale of shares, Lottomatica is now gearing up for further growth with its acquisition of SKS365, an Italian-facing operator. This purchase is intended to bolster Lottomatica’s position in the Italian market and expand its brand portfolio. To fund this acquisition, Lottomatica plans to issue and sell €500m in notes, with the acquisition expected to be finalized in the first half of 2024 and placing a €639m enterprise value on SKS365.
SKS365 has a strong online presence and operates approximately 1,000 retail sports betting points of sale. With brands like PlanetWin365 and PlanetPay365 under its umbrella, Lottomatica’s CEO Guglielmo Angelozzi views SKS365 as a highly valuable and complimentary addition to the group’s portfolio.
The sale of shares and the pending acquisition of SKS365 come on the heels of a strong Q3 for Lottomatica in 2023, which saw both revenue and earnings growth. Initially, Q3 marked the company’s first full quarter following its initial public offering (IPO) in April, and Lottomatica subsequently raised its full-year guidance based on its successful performance in the first half of the year.
For the full year, Lottomatica has set its sights on reaching revenue between €1.63bn to 1.69bn and adjusted EBITDA of €570m to €590m. The release date for its Q4 and full-year reports has not yet been announced, so the company’s ability to meet these financial goals will determine its overall success for the year.