FDJ acquires Sporting Solutions for undisclosed sum
Deal includes Sporting Solutions, Sporting Index and prop trading arm Touchbet
FDJ has acquired Sporting Solutions from Pinnacle owner Magnus Hedman for an undisclosed sum, the French firm has announced.
The deal, first reported by EGR in March, was stalled by the need for approvals from the UK Gambling Commission and the Financial Conduct Authority.
FDJ said the deal strengthened its B2B arm, FDJ Solutions, by adding “market leading” pricing, trading and risk management capabilities.
The deal includes Sporting Group’s B2B arm Sporting Solutions, spread betting B2C firm Sporting Index and proprietary trading arm Touchbet.
Multiple sources with knowledge of the deal said FDJ’s real target was Sporting Solutions but the intertwined nature of the business meant it was difficult to separate them out.
FDJ Solutions chief exec Xavier Etienne said the deal underlined FDJ’s ambition in the B2B sports betting sector.
“FDJ recognises the excellence that Sporting Group has in pricing and trading,” Etienne said. “That is why this operation is key for our B2B international development.”
The French firm, which is set to be privatised in the coming months, is thought to have secured a deal to provide the online platform for Ontario lottery monopoly OLG.
One source questioned how FDJ would utilise Touchbet, one of the biggest prop trading firms in the world and one of the main market-makers on betting exchanges.
Simon Trim, CEO of the Sporting Group, said: “We are thrilled to be joining FDJ, and becoming a part of FDJ Gaming Solutions. It is clear we have a shared vision on the future shape and evolution of the industry, in particular the important role that expert risk management and price differentiation will play going forward.
“The acquisition allows us to continue delivering our world-leading B2C spread betting proposition and B2B trading services, and we look forward to delivering exciting new products and services as part of the enlarged business.”