Sky Betting & Gambling is being acquired by Toronto-based Stars Group in a deal worth $4.7 billion.
Stars Group will pay cash and stock to SBG owners CVC Capital Partners and Sky PLC.
Stars Group said in a statement that $3.6 billion is payable in cash and the remainder is payable in approximately 37.9 million newly-issued common shares.
Acquiring SBG, one of the world’s fastest growing sportsbooks and one of Britain’s leading gaming providers, should help Stars Group diversify its portfolio of products and expand out of the poker business which it currently dominates.
SBG company reported unaudited annual revenue of £624 million and unaudited adjusted EBITDA of £202 million in the 12-month period ended December 31, 2017.
The acquisition will create the world’s largest publicly-listed online gaming firm.
Rafi Ashkenazi, the Company’s Chief Executive Officer of Stars Group, said that Sky Betting & Gambling’s betting product is the “ideal complement” to the firm’s industry-leading poker platform.
“The acquisition of Sky Betting & Gaming is a landmark moment in The Stars Group’s history,” Ashkenazi said.
He added, “SBG operates one of the world’s fastest growing sportsbooks and is one of the United Kingdom’s leading gaming providers. SBG’s premier sports betting product is the ideal complement to our industry-leading poker platform. The ability to offer two low-cost acquisition channels of this magnitude provides The Stars Group with great growth potential and will significantly increase our ability to create winning moments for our customers.”
The deal is expected to be be completed in the third quarter of 2018.