Flutter Entertainment Successfully Acquires Control of Sisal Group
In a significant move to strengthen its position in the European online gambling market, Flutter Entertainment, the Irish company behind popular brands such as Paddy Power, Betfair, and Sky Bet, has acquired Sisal Group. The deal, worth approximately $2.037 billion, was finalized in August 2022.
Sisal Group, a major player in national lottery programs across Europe and North Africa, holds operating licenses in Italy, Turkey, and Morocco. In the Italian market, Sisal is one of the leaders, making this acquisition a strategic move for Flutter Entertainment.
Peter Jackson, Flutter's chief executive, expressed his optimism about the acquisition, particularly because of Sisal's large existing customer base and the proven strength of its leadership personnel. Sisal's Chief Executive, Francesco Durante, believes that through Flutter's scale and operational capabilities, they will be able to further strengthen their leadership in the markets they operate in.
The Italian market is the second largest for online gambling in Europe, generating a gross revenue of around US$18.9 billion annually. However, the online sports gambling and casino gambling markets are already saturated with products. Jackson aims to position Flutter to attain a gold medal position in the Italian market via an omni-channel strategy with the Sisal acquisition.
Sisal Group has posted impressive financial results, with 58% year-on-year increases in revenue projections and a 51% increase in before-tax earnings. The company is projected to post before-tax earnings of US$246.6 million in 2022. The acquisition by Flutter Entertainment is expected to support its growth strategy and aim to establish them more fully with Italian wagering consumers.
The acquisition process took more than half a year to complete, first announced in December 2021. Sisal Group's management is excited about the next steps following the acquisition by Flutter Entertainment.
Eddy Cheung, a member of Flutter Entertainment's team, shares a personal anecdote about his first experience at Kai Tak, Hong Kong's gambling city, and his subsequent return to the city as an adult. This anecdote underscores the company's commitment to the gaming industry and the cultural significance it holds.
While the exact before-tax earnings of Sisal Group in 2022 are not explicitly stated, the focus of the acquisition seems to be more on the strategic expansion and the broader financial performance post-acquisition for Flutter Entertainment.
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