Flutter Entertainment has revealed that Ben Reilly, former commercial director for Paddy Power Sports, has been appointed as MD of Tombola following the operator’s purchase of the UK-based bingo brand.
Flutter announced yesterday (11 January) that it had received all necessary regulatory confirmations for the acquisition to go ahead, and that the purchase had therefore been completed on Monday in cash, fully funded through the operator’s current cash and debt facilities.
The acquisition was first announced in November last year, with Flutter revealing that it had agreed to acquire the brand for an enterprise value of £402m.
With around 400,000 average monthly players and more than 700 employees, Tombola generated pro forma revenue of £165m and EBITDA of £38.5m in the financial year ended April 2021.
Flutter said the addition of the brand to its portfolio would deliver several strategic advantages to the business, including diversification of product and the addition of an engaged and sustainable player base.
Conor Grant, CEO of Flutter’s UK & Ireland division, said in a post on LinkedIn: “I am delighted to announce we have completed the acquisition of Tombola, the UK’s leading online bingo operator.
“This acquisition will strengthen our gold medal position in the UK by providing us with a highly engaged and passionate recreational base, and allowing us to offer market-leading products across all segments, including bingo and arcade games.”
Grant added that incoming Reilly had risen through the ranks at Paddy Power Online since joining in 2010, and said he looked forward to working closely together in the future.
Reilly also took to the social media platform to share the news. He added: “After an incredible 11+ years in Paddy Power I’m hanging up the Paddy Pants and moving on to a new position as MD at Tombola.
“Really excited to learn about the business, meet the people and welcome Tombola into the Flutter Entertainment group!”
Shares were up in Flutter Entertainment (FLTR) by 1.93% to 11,425p per share on the London Stock Exchange on Tuesday.
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.