On Saturday, The Stars Group, the Canadian online gambling operator, announced that they had agreed with Sky Plc and CVC Capital Partners to purchase Sky Betting &Gaming. The deal is worth $4.7 billion of which $3.6 billion is in cash and $1.1 million is for the 37.9 million newly issued common shares.
In their statement, they also mentioned that the deal would be completed later on in the year. They are waiting for the approval of the Toronto Stock Exchange, gambling regulators and NASDAQ.
Once the Stars Group and the owners of Sky Betting and Gaming finish the transfers and deal, The Stars Group will be the largest listed online gambling operator. The deal will boost the gaming operator’s sports betting offerings and improve their position in the online gambling market.
About Sky Betting & Gaming
The founder of Sky Bet was Sky Plc. However, in 2014 they sold 80% of their stocks to CVC Capital Partners.
Sky Betting & Gaming is a company that consists of Sky Bet, Sky Casino and Sky Vegas. More so, the sports betting division is the one that is more prominent than the others. This company is one of the fastest growing gambling operators online in the UK. In 2017, their revenues were €624 million and €121 million in earnings. There are also year-on-year improvements in revenues of 46% and earnings of 51%.
Important Gambling Markets
The Stars Group will be accessing another critical market with the Sky Betting deal. However, the UK Gambling Commission has strict rules for online gambling operators. Both these companies have a market presence in Italy with Sky Bet launching there in 2016.
They also plan to improve their position in the US sports betting market should there be any changes to the law governing this kind of gambling.
This is a second purchase by The Stars Group since this year started. In February they bought a 62% stake in Crown Bet, an Australian betting company. The deal cost $117.7 million.
Whether the company will continue to make purchases this year, we don’t know but will see as the year progresses. Keep visiting our site for more gambling news.