Italy’s Lottomatica agreed to buy Spanish rival CIRSA in a €2.8 billion all-share deal to create the world’s second-largest listed gaming and sports betting firm after FanDuel owner Flutter.
U.S. fund Blackstone, currently the main shareholder in CIRSA, will become the single biggest investor with a 24% stake in the joint group whose adjusted pro-forma core profit is projected at about €2 billion. Lottomatica will pay CIRSA investors 0.668 new Lottomatica shares for each CIRSA share tendered. The exchange ratio values the Spanish firm’s shares at €16.55 each, a premium of just over 21%.
Headquartered in Rome with secondary offices for CIRSA in Barcelona, the combined company will retain the Lottomatica name and will be led by the Italian firm’s current Chairman and CEO, Guglielmo Angelozzi.
The merger is expected to generate €115 million of pre-tax cash benefits after three years from completion. During that period, the merged entity plans to return to shareholders up to €4 billion as dividends and share buybacks.
Speaking on a call with analysts, Angelozzi said the risks associated with the transaction were limited and that CIRSA, the market leader in Spain, did not require any turnaround. “What you get with this deal is stable and predictable growth,” he said.
The merged entity will be listed on Euronext Milan and Spanish stock exchanges.
Before closing, which is expected in the second quarter of 2027 and remains subject to approval by the shareholders of both companies, CIRSA will pay an extraordinary dividend of €262 million to its shareholders.