Flutter Entertainment to buy leading Italian operator Sisal for £1.62 billion

Flutter Entertainment, the parent company of Paddy Power and Sky Bet, has added leading Italian online gaming operator Sisal to the group in a £1.62 billion (€1.913bn) deal.

The company said it was aiming for a "gold medal" position in Italy, which is the second largest regulated gambling market in Europe after the United Kingdom.

Sisal, which is being bought from private equity group CVC Capital Partners, is also among the contenders to run the UK National Lottery.

Based in Milan, Sisal is expected to generate £211 million (€248m) in ebitda (earnings before interest, taxation, depreciation and amortisation) in 2021, with 58 per cent coming from its online offering and the remainder from retail and lottery operations.

Around 90 per cent of its earnings are generated in Italy, with the remainder coming from regulated lottery operations in Turkey and Morocco. The business employs around 2,500 people.

Flutter Entertainment chief executive Peter Jackson

Flutter chief executive Peter Jackson said: "I am delighted to add Sisal, Italy's leading gaming brand, to the group as we look to attain a gold medal position in the Italian market.

"For some time we have wanted to pursue this market opportunity via an omnichannel strategy and this acquisition will ideally position us to do so.

"Sisal has grown its online presence significantly in recent years, aided by its proprietary platform and commitment to innovation. I'm excited to see how Flutter can complement these capabilities through our scale, differentiated products and operational capabilities."

The deal is expected to be completed in the second quarter of 2022.

Sisal chief executive Francesco Durante added: "We are delighted to join Flutter and are convinced we will be able to further strengthen our leadership in the markets we operate in. I look forward to working with Peter and the team on the next chapter of Sisal history."

Analysts at stockbrokers Goodbody described the deal as "a positive move by Flutter".

They added in a note: "Firstly, it diversifies group revenues further and will position it as the leader in the attractive Italian market. Since advertising restrictions were introduced in Italy an omnichannel presence has become key.

"We see significant opportunities for Flutter to implement its industry leading risk and trading capabilities on the business; along with increasing Sisal's online gaming content."

Flutter’s share price was up 235p at 11,540p at the close of play yesterday.

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