Lottomatica and CIRSA have agreed an all-share combination that will bring the two gambling groups together. The Lottomatica CIRSA merger is expected to create a company with around EUR 2bn in adjusted EBITDA. The transaction combines Lottomatica’s Italian business with CIRSA’s operations across Spain and several international markets.

• Lottomatica shareholders will own around 67.5% of the combined company, while CIRSA shareholders will hold about 32.5%. Blackstone is expected to retain an approximately 24% stake. CIRSA shareholders will also receive an extraordinary EUR 262m dividend before completion.
• The Lottomatica CIRSA merger is expected to generate around EUR 115m in annual run-rate synergies within three years. This includes about EUR 101m of operating cost savings and EUR 14m from lower interest costs. Savings are expected across procurement, technology, trading, risk management and shared services.
• The combined group would generate 57% of adjusted EBITDA in Italy, 23% in Spain and 20% in other markets. Online and sports would account for 48% of pro forma adjusted EBITDA, distributed gaming for 27% and casinos for 25%. CIRSA’s international markets include Colombia, Mexico, Panama, Peru, Portugal, Morocco and several other countries.
• The Lottomatica CIRSA merger also brings together different operating profiles. Lottomatica currently generates 79% of adjusted EBITDA from online and sports, while CIRSA generates 53% from casinos and 34% from distributed gaming. The combined company would therefore cover online gambling, sports betting, casinos and land-based gaming.
• Guglielmo Angelozzi will serve as Chairman and CEO of the combined group, with Laurence Van Lancker as Deputy CEO and CFO. CIRSA CEO Antonio Hostench will remain CEO of CIRSA, while Antonio Grau will continue as CIRSA CFO.

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