Acquisition of Sisal, Italy’s leading online gaming operator

Flutter Entertainment PLC (hereinafter referred to as "flutter" or "group") is 1. 91 trillion for 1. 913 billion euros/1 trillion for 1. 913 billion euros (hereinafter referred to as "Saizar"), a major Italian online game operating company due to the joint investment with the CVC Capital Partners Fund VI. We will announce that it has been acquired for £ 620 billion. The acquisition is completely in line with the group strategies aimed at investing in the world's regulated markets. The acquisition is expected to be completed in the second quarter of 2022, and is expected to contribute to the increase in upside after 12 months.

SISAL is a major game operator, gambling and lottery headquartered in Milan. In the 12 months to December 2021, Shirl is planning to receive € 248 million (£ 211 million), of which 59%are online offers, the rest of the retail and lottery businesses. Receive from the combination. In 2021, about 90 % of EBITDA from Sizarchang was recorded in Italy, and the rest was recorded from a lottery for adjusted Turkey and Morocco. Currently, the company is operated by 2, 500 employees.

By connecting the flutter with the sizzle hemp, an important strategic result is guaranteed:

• We provide gold in Italy by connecting the main online book and the Flutter portfolio. Pokerstars and Betfair's available Italian online entry Flutter and SISAL cunning will actually lead to a total of 20 % 2 % of online sales.
• It is a great, hig h-speed, hig h-speed, adjustable online market share: Ital y-Internet invasion is now growing from 10 % to about 20 % in Europe, which can be adjusted in Europe 2 sizes. The profit from Siza r-online sales has been 34 % since 2016.
• SISAL} Omn i-Channe l-Proposal provides more competitive advantage to more flutters, taking into account the limitations of marketing in Italy and the rule of deposits and cash removal by retail business.
• SISAL} increases flutter recreational customer base and adds 300. 000 3 high inbound online players and over 9. 5 million retail buyers in the middle of the month.
• Flatter products and geographical presence further diversified, increased the ratio of flutter rescue from adjustable markets, exceeding 91%in the third quarter of 2021.
• Add a testing manager team that wants to bear the debt in the promotion of unprecedented gambling in Italy, enhancing the staffing of flutter, continuing company management, and promoting unprecedented gambling in Italy.

Flutter's executive director Peter Jackson commented:

I am glad that Saizar, a leading gaming brand in Italy, has become a member of the Group. For a long time, we have wanted to make use of the potential of this market with the support of the omn i-channel strategy, and this acquisition is perfect for this. In recent years, Sizer has greatly expanded its online existence, which has been promoted by the loyalty to personal platforms and technological innovation. Flatters are looking forward to how they can complement these skills thanks to our size, differentiated products, and operation opportunities. I am looking forward to welcoming other members of Francesco and Sizar in 2022 to flutters. "

Francesco Durante commented:

For the past five years, thanks to CVC's assistance, we have created a secure silicle to promote digital and international gambling business. Thanks to the commitment of digital innovation, international expansion, and gambling increase, it has reached an advantageous position in the Italian online game market, has won lottery bidding in Morocco and Turkey, and presents in larg e-scale markets. Is expanded. I am happy to be able to participate in flutters, and I am convinced that thanks to the size and operation of the flutter can make the leadership in the market in which we are active. I am looking forward to starting with Peter and a team that correctly understand the status of Sizaru hemp.

CVC Italian Managing Companion Jumpiero Mazza commented:

We are very proud of the splash and its adaptation that the scales have achieved since the procurement stage in 2016. SISAL is thanks to its own digital responsibility in Italy in the field of online games while developing its own international business. Apart from this, the company leads the Italian industry to guarantee serious and modest games. We are grateful that we have led this path of success without paying attention to the occupation of Francesco and the manager as a whole, unimaginable loyalty about concentration and ambitious, and even the difficulties of adaptation and pandemic. I think. Flutter is a fresh mythic friend for Shirl, and we pray for their success.

1. The charm of the Italian market for flutters

Italian Bazar has beautiful features:

• Space}: Italy is considered to be the second largest gambling market in Europe after England, with a 2019 total gaming income (GGR) of 19 billion euros and £ 16 billion.
• Possibility to lift the Internet in conjunction with the continuous transition of retail:
  • While only 10% of Italy's total GGR was generated online in 2019, the Covid-19 pandemic has led to a significant increase over the past two years to around 20%. As trading conditions normalize, it is expected that a significant proportion of displaced buyers will likely stay online.
  • Internet penetration remains rather low compared to the UK and Australia, where the share of the internet in total gaming spend is estimated to be between 60% and 70% in 2019.
  • With current favourable structural dynamics, the Italian online market is expected to be worth £3. 6 billion by 2024, which represents a five-year compound annual growth rate of 18%.
  • Omnichannel operators like Sisal are poised to provide the greatest lift by leveraging their retail presence and ability to engage with customers through both channels.
  • In particular, advertising restrictions have highlighted the potential for omnichannel operators to leverage the superior brand recognition of the retail environment to drive purchasing online consumers. Since these regulations were introduced, large omnichannel operators have been gaining market share at the expense of online pure-play operators.
  • Furthermore, since a significant percentage of online deposits and withdrawals are processed through retail networks and retail employees act as brand advocates, multichannel operators have gained a competitive advantage across their entire business.
  • By 2022, 95% of online betting profits are expected to come from gambling (59%) and sports betting (36%), which aligns perfectly with Flutter's main business areas.
  • The majority of retail sales are expected to come from slot machines (57%) and lotteries (37%), with sports betting at just 6%.

  2. Sisal - Popular in the Italian market and a leading Internet asset

  We believe that Sisal has the opportunity to capitalize on the structural reasons for its rise as mentioned above. Its main characteristics are:

  • Currently Favorite Position: Tolika Sisal 11, 9% of the online market in real time 2. Combined with existing Flutter resources, we will achieve a fraction within 20%2
  • Popular brand in the market: The number one recognized brand in the Italian market, supported by a retail network of about 1, 700 sisal shops and 40, 000 kiosks and dealerships.
  • Provides a wide variety of products including games, sports, and lotteries
  • In Italy, an average of more than 300. 000 online players play online, and 9. 5 million customers use online.
  • Uniquely technology: The company is operated on a fully experienced technical stack with a track record of focusing on providing innovative products. More than 1, 000 employees are developing online products.
  • Experienced management will continue to lead the company.
  • Opportunities for growth in other markets / product lines: Thanks to the lottery, SISAL has been able to grow steadily outside Italy. In Turkey, lottery business is expected to create a lottery business by 2021 by 2021. With this acquisition, flutter will have the first time a lottery business.
  • Emphasis on sustainability: Supported by artificial intelligence and the industry's highest level of authentication criteria, focus on the market to ESG and safer gambling.

  3. Financial indicators and consideration 1

  Sizar is expected to reach 590 million pounds (694 million euros) in 2021. The consolidated EBITDA 7 is 2111 million pounds (€ 248 million), with 90 % of businesses in Italy (online 59 %, retail 31 %).

  (i) SISAL's sports betting by utilizing the SISAL retail channels to increase online deposits of the existing brands of fluters (poker stars and bet fairs), (II) flutter price setting and risk management ability Expand services, (III), to expand SISAL's casino products by providing access to native gaming content of flutter. Cost lines of this transaction are expected to be about 10 million pounds mainly due to potential cost reductions. Over time, the profit synergy is expected to surpass Cost Synerdie.

  The total price for Sicir is 1, 913 billion euros / £ 1, 620 billion, which is paid in full cash when transactions are completed. This amount includes the full repayment of all debts of Sizar, associated with the completion of the transaction. The transaction is covered by additional debt from a flutter agreed with the Barclays Bank PLC. The condition of this transaction is to approve the merger and to be approved by conventional gambling and foreign investment. The transaction is scheduled to be completed in the second quarter of 2022, as a condition for obtaining these approval.

  end

  The person in charge of the announcement of the announcement on behalf of the flutter is Fratter Company Edward Trainer.

  contact address

  Investor information
  David Jennings (Investor Response / Financial Management Group Director)	+ 353 87 951 3560
  Ciala Omelane (Investor Response	+ 353 87 947 7862
  Investor Information Liam Kealie	+ 353 87 665 2014
  press
  Lindsay Dumford, Corporate Communication	+ 44 79 3197 2959
  Corporate Communication Robert Allen	+ 44 75 5444 1363
  Billy Murphy, Dolly Communications	+ 353 1 260 5000
  James Margatroid, Finn's Berry	+ 44 20 7251 3801

  1. FY2021's financial guidance was provided by Sizar's management team, in line with the actual 1 0-month EBITDA (£ 163 million) and tw o-month expectations (£ 48 million). The business performance in 2020 was greatly influenced by the Retail regulations related to COVID-19.2 online market share in the total income of the game in October 20213 Average number of players for 12 months until June 30, 20214 Source: ADM (AGENZIA DOGANE E DEI Monopol i-Italian gambling regulations), MDF partners. Includes 5 billion pounds.5 Source: MDF Partners 6. After the project is completed, the definition of scaling revenue will be defined in accordance with the define flutter's income (recorded before the game cost), and the number of revenue will be reported according to it.7. 2021 consolidated EBITDA € 2048 million contains 13 million euros assigned to a small number of shareholders.8 As of September 30, 2021, the total asset value of Sizal is 1. 658 million euros.

  

  Elim Poon - Journalist, Creative Writer

  Last modified: 27.08.2024

  Betfair and Poker Stars owner Flutter Entertainment is to buy Italian gaming operator Sisal for billion pounds ($ billion) in a. Trading as Snai, Snaitech is one of Italy's largest gambling operators, where it competes with Flutter's Sisal brand. Italian online gaming. Sisal: Leading operator in attractive Italian market. Flutter Leading online operator; omnichannel focus with over 30m customers.