The transaction, which was announced on 23 December 2021, has now come to a close, allowing Flutter to take control of the Italian operator from CVC Capital Partners.
However, Sisal didn’t come cheap. The deal signed between CVC and Flutter placed a hefty £1.62bn ($1.97bn) price tag on the operator.
This sum, which included all of Sisal’s debt, was due in full on completion. Flutter planned to finance the transaction through additional debt facilities agreed with Barclays Bank.
As a result, completion has brought Flutter’s expected weighted average cost of debt to approximately 3.4% for H2.
Completion also came slightly late. When the transaction was announced, this was expected to take place in Q2. Regardless, Flutter was excited to have finally completed its takeover.
“The acquisition of Italy’s leading online gaming operator, in an attractive and fast-growing online market, is aligned to the group’s strategy of investing to build leadership positions in regulated markets,” it said.
This statement largely aligns with comments made by Peter Jackson, Flutter CEO, when the transaction was announced. He said Flutter was looking to “attain a gold medal position in the Italian market.”
By combining Sisal’s operations with its existing presence in the Italian online market, through the PokerStars and Betfair brands, Flutter said the transaction “will result in a combined online share of 20%.”
In the group’s statement announcing the transaction’s completion, Flutter said: “Sisal has performed strongly since the transaction was announced with year-on-year growth of 58% in revenue to £402m and 51% in EBITDA to £120m during H1 2022.”