Flutter to acquire Tombola in £402m all-cash deal
Flutter Entertainment today (18 November) announced it has agreed to acquire UK-facing online bingo operator Tombola, for an enterprise value of £402m.
Under the terms of the transaction, which is conditional on merger control clearance by the UK Competition and Markets Authority, Flutter will pay £402m in cash upon completion for 100% of the business. The operator expects the deal to complete in Q1 2022.
Tombola has teams based primarily in Sunderland and Gibraltar, and focuses on providing a low staking bingo proposition to a highly engaged customer base, Flutter said.
It was the first major UK-facing operator to introduce both mandatory staking and deposit limits, helping it to build a highly sustainable player base over the past 16 years.
In addition, its revenue base is fully regulated, with over 80% coming from the UK and 16% from Italy and Spain, the operator said.
It has around 400,000 average monthly players and over 700 employees, and generated pro forma revenue of £165m and EBITDA of £38.5m in its financial year ended April 2021.
Flutter said that the addition of the brand to its portfolio will deliver several key strategic advantages to the business, including diversification of product, the addition of an engaged and sustainable player base, enhancement of Flutter’s online gaming presence in its core UK market, and alignment with the operator’s existing safer gambling strategy.
“As the world’s leading online gambling operator, Flutter is delighted to add Tombola, the UK’s premier bingo brand to the Group,” said Peter Jackson, Flutter’s chief executive.
“Tombola is a business we have long admired for its product expertise, highly recreational customer base and focus on sustainable play. The brand aligns closely with Flutter’s safer gambling strategy, a key area of focus for us.”
“I am excited to combine Flutter’s digital marketing expertise with Tombola’s operational capabilities within the UK & Ireland division,” Jackson concluded.