Italian gambling giant Lottomatica Group has formally notified the Borsa Milan of its agreement to absorb Spanish casino and gaming operator CIRSA Enterprises in an all-share transaction. The proposed combination will create the second-largest publicly listed gambling operator globally, generating combined annual revenue exceeding €4.4bn and a pro-forma adjusted EBITDA of approximately €2.0bn for the 12-month period ending June 30, 2026.
Under the agreed transaction terms, CIRSA will be absorbed by Lottomatica while retaining its standalone brand identity and regional assets. Cirsa shareholders will receive 0.668 newly issued Lottomatica shares for each CIRSA share held, granting them roughly a 32.5% equity stake in the enlarged enterprise, while existing Lottomatica shareholders will retain 67.5%. US private equity firm Blackstone, which has served as CIRSA’s majority anchor shareholder with a circa 75% holding since 2018, fully backs the merger and will become Lottomatica’s single largest shareholder with approximately 24% ownership.
Prior to closing, CIRSA plans to distribute an extraordinary dividend of €262m (€1.56 per share) to its existing investors. Post-completion, the combined board intends to seek shareholder approval for an additional €744m capital return via extraordinary dividends or share buybacks. Management projects annual pre-tax cash synergies of approximately €115m by the third year following integration, alongside capacity for up to €4bn in total capital returns over three years.
Strategically, the merger unites Lottomatica’s dominant Italian retail betting and iGaming presence (including GoldBet and Planetwin365) with CIRSA’s established casino, gaming machine, and online footprints across Spain and Latin America (Colombia, Panama, Peru, and Mexico). Lottomatica CEO Guglielmo Angelozzi will lead the merged entity as Chairman and CEO from headquarters in Rome, with a secondary hub in Barcelona.
The transaction is slated for completion in Q2 2027, subject to regulatory clearances and shareholder votes.
Source: SBC News