Flutter Entertainment (FLTR) buys Tombola for $402m
10:05, 18 November 2021
Flutter Entertainment (FLTR) has acquired UK bingo operator Tombola for an enterprise value of £402m ($542), it announced on Thursday.
Under the terms of the transaction, Flutter said it will pay in cash upon completion for 100% of the business. The transaction is conditional on merger control clearance by the UK Competition and Markets Authority (CMA) and is expected to complete in the first quarter of 2022.
Delivering on strategy
The owner of Paddy Power said the addition of Tombola to the Flutter portfolio will deliver several key strategic advantages, including the diversification of its portfolio, the addition of an engaged and sustainable player base, an enhancement of Flutter’s online gaming presence in its core UK market, and the addition of further product capabilities and expertise.
Moreover, Flutter said it will align with its safer gambling strategy of expansion in its recreational customer base.
“Tombola, with teams primarily located in Sunderland and Gibraltar, is a successful bingo-led gaming company with an emphasis on providing a low-staking bingo proposition to a highly engaged customer base. Tombola was the first major UK focused operator to introduce both mandatory staking and deposit limits, building a highly sustainable player base over the last 16 years,” Flutter said in its announcement.
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Flutter also highlighted that more than 80% of Tombola’s revenue base comes from the UK and 16% comes from Italy and Spain. Moreover, it has an average of around 400,000 monthly players and more than 700 employees.
In its financial year to end April 2021, Tombola generated pro forma revenue of £164m and earnings before interest, taxes, depreciation and amortisation (EBITDA) of £38.5m, the Irish bookmaking holding company said.
“Tombola is a business we have long admired for its product expertise, highly recreational customer base and focus on sustainable play. The brand aligns closely with Flutter’s safer gambling strategy, a key area of focus for us. I am excited to combine Flutter’s digital marketing expertise with Tombola’s operational capabilities within the UK and Ireland division,” Peter Jackson, Flutter’s chief executive, said.
Shares in Flutter Entertainment were up 0.86% on Thursday morning on the London Stock Exchange.
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