ZEAL Network SE has signed an agreement to acquire SevenCanyon and expand into the UK market.  The transaction is expected to close once the purchase price has been paid and the agreement becomes legally effective – see more details.

• ZEAL Network already owned a 3.5% stake in SevenCanyon before signing the agreement. It will now acquire the remaining 96.5% of the shares. The move broadens ZEAL’s geographic footprint beyond its existing markets. The ZEAL SevenCanyon acquisition marks the company’s entry into the UK prize draw market.
• The purchase price includes an initial cash payment of approximately GBP 33.8 million (ca. EUR 39.6 million), subject to post-completion adjustments. These adjustments include vehicle inventory valued in the single-digit millions of pounds. Additional payments of up to approximately GBP 4.8 million (ca. EUR 5.6 million) may be made over six months if agreed financial targets are achieved.
• ZEAL SevenCanyon acquisition is expected to contribute to both revenue and EBITDA after the business is consolidated. ZEAL said it will review its revenue guidance once the IFRS treatment of SevenCanyon’s revenue streams has been completed. The company expects SevenCanyon to make a meaningful contribution to future financial results.
• ZEAL confirmed its EBITDA guidance of EUR 70 million to EUR 75 million, assuming a normal jackpot environment in Germany. The updated forecast includes expected one-off transaction costs in the mid-single-digit millions of euros. Despite these costs, the company expects the acquisition to strengthen earnings over time.
• For the first full financial year after completion, ZEAL expects the acquisition to deliver a positive EBITDA contribution in the high-single-digit millions of euros. EBITDA is defined as earnings before depreciation, amortisation, financial result, share of results from associates and taxes.

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