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Gamma Intermediate completes sale of 6.4% stake in Lottomatica

| By Kyle Goldsmith
Gamma Intermediate has completed the sale of 16 million Lottomatica shares, representing a 6.4% stake in the Italian company.

Despite the sale, worth €152m (£130.5m/$165.5m), Gamma Intermediate retains a majority stake of 65.4% in Lottomatica.

Gamma Intermediate completed the deal at €9.50 per share, with the sale conducted through an accelerated bookbuilding process. The placement was made to institutional investors, with no public offering in any country.

Lottomatica expects the final settlement to be on or around 22 January. Gamma Intermediate has agreed to a 90-day lock-up for its remaining shares in Lottomatica.

Lottomatica plotting growth trajectory with SKS365 purchase

In November, Lottomatica agreed a deal to acquire 100% of the share capital in the Italian-facing operator SKS365. Lottomatica stated the purchase will strengthen its position in the Italian market, while also expanding its brand portfolio.

Lottomatica announced plans to issue and sell €500m in notes to help fund the acquisition, which is due to be completed in the first half of 2024. The company says the agreement places a €639m enterprise value on SKS365.

SKS365 has a strong online presence, while also running approximately 1,000 retail sports betting points of sale. With PlanetWin365 and PlanetPay365 among its brands, Lottomatica chief executive Guglielmo Angelozzi believes SKS365 will be “highly valuable and complementary” to the group’s portfolio.

Lottomatica won the race to acquire SKS365, with Playtech having previously confirmed it was in talks with the Malta-based operator. Lottomatica remained quiet until it reached a deal with SKS365, with Flutter also reportedly interested.

Strong Q3 for Lottomatica

The deals with Gamma Intermediate and SKS365 come after a positive Q3 2023 for Lottomatica, reporting both revenue and earnings growth. Q3 was also its first full quarter following its IPO in April.

Lottomatica also enjoyed a successful H1, after which it raised its full-year guidance. For the full year, Lottomatica expects revenue of between €1.63bn to €1.69bn and adjusted EBITDA of €570m to €590m.

Whether Lottomatica achieves this full-year guidance remains to be seen, with a date not yet announced for the release of its Q4 and full-year reports.

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