Italy’s Lottomatica has announced the absorption, through merger, of Spain’s Cirsa in a share-swap deal valued at 2.8 billion euros.
Both Lottomatica and Cirsa are leaders in their respective domestic markets. The Italian company holds a 30% market share, while the Spanish company reaches 12%.
Both companies reported revenues of over 2.2 billion each in their latest annual results, and the combined business “will create a leading global sports betting and gaming operator,” according to Cirsa.
It also notes that the company resulting from the merger will be “the second-largest listed gaming and sports betting operator in the world, with a pro forma adjusted EBITDA of approximately 2 billion euros.” It will only be behind Flutter, which maintains a forecast for fiscal year 2026 of 2.66 billion dollars (2.29 billion euros).
It also emphasizes that both companies have “exposure to a diversified portfolio of highly attractive, high-growth markets.” The potential market of their combined business is around 34 billion euros.
The companies are confident they will generate pre-tax cash synergies of 115 million euros per year starting from the third fiscal year after the merger closes, an estimate described as “unambitious” by Regulus Partners.
Conservative projection
The consultancy specializing in sports and leisure appears unenthusiastic about the deal, despite its obvious advantages.
The diversification opportunity is seen as a natural and positive step, but Regulus Partners maintains that the accompanying financial statements are “unappealing,” although they say there is no concern about the economic security of the combined business.
The figure of 115 million is likely a conservative estimate, and the operating benefits resulting from the merger will significantly raise the number.
However, this caution could be interpreted as a sign of intent, suggesting that management wants to avoid risks both in managing the new entity and in its projections.
Regulus Partners considers a strategic and decisive investment necessary to realize the advantages of the deal. Without it, the company could become a “low-growth conglomerate with few synergies beyond linguistic and cultural similarities, with enough revenue diversification to justify the ‘global’ label, though without a defined global strategy.”
New management
Guglielmo Angelozzi has held the position of CEO of Lottomatica since 2014 and has served as Chairman of the Board of Directors since 2025. He will continue his role at the new Lottomatica (the company will keep that name). He will be joined by his longtime colleague, Laurence Van Lancker, who will serve as CFO and Deputy CEO.
For his part, Antonio Hostench, CEO of Cirsa, and its CFO, Antonio Grau, will remain in their positions under the new management structure. They will be in charge of overseeing Cirsa’s operations.
Regarding control of the company, Lottomatica’s shareholders will hold approximately 67.5% of the capital, and Cirsa’s shareholders the remaining 32.5%.
Blackstone, Cirsa’s majority shareholder, will become the largest individual shareholder of the new group, with a 24% stake.
The American investment fund will also appoint two of the 13 members of the Board of Directors, which will be made up of Lottomatica’s current board members.
Before the deal is completed, Cirsa will distribute to its shareholders an extraordinary dividend of approximately 262 million euros (1.56 euros per share) given the share premium.
The transaction is expected to become effective in the second quarter of 2027.
Lottomatica’s shares will continue to be listed in Italy and will begin trading on the Spanish stock exchanges following the merger.