Lottomatica swoops for Betflag in €310m acquisition
Italian powerhouse aims to strengthen grip on the market with purchase of 10-year-old challenger operator
Lottomatica is set to acquire fellow Italian operator Betflag in a €310m (£270.5m) deal, a move which will consolidate its position as a market leader.
Lottomatica will acquire 100% of the share capital in Betflag but will continue to operate the platform as a separate entity to Lottomatica.
The deal is expected to close in the coming days.
The €310m purchase price also includes a variable of up to €50m to be paid in 2024 based on Betflag’s financial performance in 2023.
The acquisition has been financed by the release from escrow of the proceeds from Lottomatica’s senior secured notes that were issued on 27 September.
Online operator Betflag posted EBITDA in the last 12 months to 30 September of around €36m.
In September, Betflag recorded gross gaming revenue (GGR) of €8.4m for its online casino arm, corresponding to a 5.11% market share.
The brand’s September performance put it ahead of the likes of bwin, LeoVegas and bet365.
In terms of online sports betting, Betflag took a market share of just under 1% after recording GGR of €1.4m, coming in ahead of Betway and Betclic.
Launched in 2012, Betflag, offers a full suite of products including sports betting, horseracing, casino, live casino, poker, bingo and lotteries. The company also boasts in-house technology.
Touching on the acquisition, Lottomatica said: “Betflag has a complete portfolio of authorised online games and may rely on an established and recognised brand in the market, as well as distinctive expertise in terms of product, marketing and customer service.
“The transaction, which will be completed in the upcoming days, allows Lottomatica Group to consolidate its presence in the Italian market, particularly strengthening its position in the online casino games sector, and represents a key milestone for the group’s multi-brand strategy, aimed at ensuring full coverage of the different product verticals and the different player clusters.”
Elsewhere, Lottomatica MD of digital and betting for Italy, Alessandro Fiumara, recently spoke to EGR about the operator’s strong growth in recent years.