Lottomatica, Cirsa Agree Merger to Create Global Gaming Giant

Lottomatica and Cirsa have agreed an all-share merger that would create a gaming group with around €2 billion ($2.32 billion) in pro forma adjusted EBITDA. Lottomatica’s proposed merger with Cirsa would create the world’s second largest list gaming operator by EBITDA. (Image: Shutterstock). The companies said the transaction would create the second-largest listed gaming and sports betting operator in the world by that measure. The combined group would hold leading positions in Italy, Spain, and Latin America. Under the deal, Cirsa will merge into Lottomatica through an EU cross-border statutory merger. Lottomatica will retain its name and the combined company will continue to be headquartered in Rome. A secondary headquarters will be located in the province of Barcelona. “With the combination of Lottomatica and Cirsa, two extremely successful companies, we create the undisputed leader in Italy and Spain, among the best gaming markets globally, complemented by leadership positions in other very high growth geographies,” said Guglielmo Angelozzi, chairman and CEO of Lottomatica. Angelozzi will remain chairman and CEO, while Laurence Van Lancker will continue as deputy CEO and chief financial officer. Antonio Hostench, CEO of Cirsa, will continue to lead the Spanish business. He added that the merger would create a “world-class diversified gaming leader.” Existing Lottomatica shareholders are expected to own about 67.5% of the combined company. Cirsa shareholders will hold approximately 32.5%. Blackstone, Cirsa’s controlling shareholder, would own around 24% and become the enlarged company’s largest shareholder. Cost Savings and Online Growth Behind the Deal Lottomatica and Cirsa expect to generate around €115 million ($133 million) of annual cash synergies by the third full year after the merger is completed. About €101 million would come from operating costs. The companies identified procurement, technology, trading and risk management, shared services, and general administrative costs as potential areas for savings. As well as cost-saving synergies, the companies cited consolidated market leadership and accelerated online growth as reasons behind the deal. Lottomatica also sees Cirsa’s online business as a major opportunity, with plans to apply Lottomatica’s technology and digital marketing infrastructure across Cirsa’s operations. The merger would also broaden Lottomatica beyond Italy. On a pro forma basis, Italy would contribute 57% of adjusted EBITDA, Spain 23%, and other markets 20%. Online and sports betting would account for 48% of the combined total. “More avenues of growth especially in online, same level of capital returns but with increased resiliency, low execution risk: this is a solid recipe,” said Angelozzi. Cirsa shareholders will receive 0.668 newly issued Lottomatica shares for every Cirsa share held. Before completion, Cirsa also plans an extraordinary dividend of €262 million ($303 million). Lottomatica’s board plans to propose up to €4 billion ($4.63 billion) in capital returns during the three years after completion, subject to shareholder approval. That figure includes a planned €744 million ($862 million) to shareholders once the deal is closed. Shareholders and regulators must approve the transaction. Completion is targeted for Q2 2027. Lottomatica shares will continue trading in Milan, while the company will also list them in Spain after the merger. The post Lottomatica, Cirsa Agree Merger to Create Global Gaming Giant appeared first on Casino.org.