Entertainment company Sky has announced the completion of the sale of a majority stake in its Sky Betting and Gaming (Sky Bet) online business to private equity firm CVC Capital Partners, having received regulatory clearances.
CVC has acquired an 80% stake in the UK operator, in a deal which values Sky Bet at £800m and 15 times its EBITDA, while Sky will retain a 20% stake in the company.
Sky has been paid £600m in cash and is set to receive a further payment of £120m at a later stage.
The terms of the deal mean that Sky will be entitled to further consideration contingent on CVC achieving certain minimum return criteria on its investment, while the Sky Bet name will continue to be used by CVC as part of a long-term licensing agreement between both companies.
News of the acquisition was first announced by both companies in December and it was expected that it would be completed in the first quarter of 2015 after being cleared by regulators in the UK and Ireland.
Sky said in a press release: “The sale crystallises value for Sky that has been created in Sky Bet, and enables the enlarged Sky to focus on the significant opportunity for growth in pay TV across the five markets in which it now operates.”