Italy’s Lottomatica is set to absorb Spanish gaming and betting operator Cirsa in an all-share merger that will see Blackstone roll its existing investment in Cirsa into the enlarged group, according to a report by Reuters.
Blackstone, which controls Cirsa through holding company LHMC Midco, will become the largest individual shareholder of the combined Lottomatica, with a stake of approximately 24% following completion. The US private equity firm will also receive two seats on the enlarged company’s board.
The transaction does not involve Blackstone providing new acquisition financing. Instead, Cirsa shareholders will exchange their existing holdings for newly issued Lottomatica shares, with 0.668 Lottomatica shares to be issued for each Cirsa share.
Existing Lottomatica shareholders are expected to own approximately 67.5% of the enlarged company, while Cirsa shareholders collectively will hold the remaining 32.5%. Blackstone’s approximately 24% position will make it the largest single shareholder.
The combined business will retain the Lottomatica name and is expected to become the second-largest listed gaming and sports betting operator globally. It will be headquartered in Rome, with Cirsa retaining a secondary base in Barcelona.
Before the merger takes effect, Cirsa plans to distribute an extraordinary €262m dividend to its shareholders. The combined company is expected to generate €115m in annual pre-tax cash synergies by its third full year following completion and could return up to €4bn to shareholders through dividends and share buybacks over the subsequent three years.
Lottomatica CEO Guglielmo Angelozzi will lead the enlarged group, while Blackstone’s two board appointments will give the private equity firm continued representation at governance level.
