Lottomatica Holding, the IGT-owned Italian online gambling business, is selling off two of its businesses.
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Lottomatica Videolot Reteand Lottomatica Scommesse, which operate the B2C gaming machine, sports betting and digital gaming businesses in Italy, are being sold in their entirety to Gamenet Group, a subsidiary of funds managed by an affiliate of Apollo Global Management.
Lottomatica Casino. Il sito si presenta come molto pulito e strutturato in modo da poter contenere tutta l’incredibile offerta di giochi di Lottomatica.it: nella barra in alto infatti trovate le sezioni Better, Casino, Lotto e Gratta e Vinci, Poker, Soft Games, Bingo, Skill Games e Fantasysport. It is one of 2 online gaming sites owned by Lottomatica Scommesse Srl. The site's primary language is Italian. It supports both downloadable software and the ability to place a wager without a download. Lottomatica runs on the IPN Italy network. Visit Lottomatica.
Marco Sala, CEO at IGT, commented: “This enables IGT to monetise its leadership positions in the Italian B2C gaming machine, sports betting and digital spaces at an attractive multiple to comparable Italian transactions, providing us with enhanced financial flexibility.
'Aligning with our recent reorganisation, the favourable rebalancing of our business and geographic mix reframes and simplifies our priorities while improving the company’s future profit margin, cash flow generation and debt profile.”
The value of the deal is €1.1bn. The two companies being sold generated €207m in aggregated adjusted EBITDA in 2019, placing the deal in the upper band of valuation ranges achieved by the most recent Italian benchmarks.
The sale price is €950m, with €725m payable at closing, €100m payable on December 31, 2021, and the remaining €125m payable on September 30, 2022. It is expected that the deal will be concluded in the first half of 2021.