Flutter Entertainment has completed the $2.8 billion acquisition of Italian gaming and betting operator Sisal. Sportsbet’s owner first announced the deal in December last year but had to wait for the green light from regulators to confirm the multi-billion dollar acquisition.
In a statement, Flutter Entertainment said that it was pleased to announce that regulators approved the acquisition of Sisal, and the transaction was completed on August 4, 2022.
Flutter Enters a $28 Billion Market
The deal is of great importance for the owner of Sportsbet and Betfair as Italy is the second largest regulated market in Europe. With gross gaming revenue of $28 billion, Italy was behind the UK but ahead of all other European markets in 2019.
Sisal is headquartered in Milan and employs 2,500 people. Analysts expect the Italian betting operator to earn $365 million this year.
Flutter’s acquisition announcement had a positive effect on Sisal’s operations and the company generated $702 million in revenue and $210 million in earnings in the first half of 2022 – a 58% year-on-year increase in revenue and a 51% growth in EBIDTA compared to the same period last year.
Flutter Entertainment completed the acquisition of Sisal using debt facilities agreed upon when the deal was first announced in December last year. That brings Flutter’s expected cost of debt for the second half of 2022 to 3.4%.
When the deal was announced, Flutter’s shares increased in value and were traded at a higher price.