The bingo-led gaming company has teams primarily located in Sunderland and Gibraltar, and generated revenue of £164m and EBITDA of £38.5m in its financial year to end April 2021.

Under the terms of the transaction, Flutter will pay £402m in cash upon completion for 100% of the business, with the transaction conditional on merger control clearance by the UK Competition and Markets Authority. It is expected to be completed in the first quarter of 2022.

According to Flutter, the addition of Tombola provides several key strategic advantages, including the diversification of its products, the addition of an engaged and sustainable player base, and the addition of further product capabilities and expertise.

Other advantages include the enhancement of Flutter’s online gaming presence in its core UK market, while the acquisition aligns with Flutter’s safer gambling strategy of expansion in its recreational customer base.

“As the world’s leading online gambling operator, Flutter is delighted to add Tombola, the UK’s premier bingo brand to the Group,” said Flutter Chief Executive Peter Jackson. “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 & Ireland division.”