FDJ to acquire Irish National Lottery operator for €350m
French operator seals definitive agreement with the Ontario Teachers’ Pension Plan to snap up Premier Lotteries Ireland
FDJ is set to acquire Irish National Lottery operator Premier Lotteries Ireland (PLI) in a €350m deal.
The French operator has entered into a definitive agreement with PLI owner, the Ontario Teachers’ Pension Plan (OTPP), to secure its existing majority shareholding.
As part of the transaction, PLI’s other shareholders, An Post and the An Post pension fund, will also sell minority shareholdings to FDJ.
PLI, which was awarded a 20-year licence to run the Irish National Lottery in 2014, posted gross gaming revenue of €399m in 2022.
FDJ said the additional contribution from PLI would account to more than 5% company growth over a 12-month period.
Since being awarded the licence, PLI has raised more than €1.9bn for good causes.
Draw games make up two-thirds of the Irish National Lottery’s stakes, and instant games one-third. More than 15% of stakes are made via digital platforms.
Premier Lotteries Ireland also boasts more than 200 employees.
The transaction is subject to standard customary closing conditions and regulatory approval. The deal is expected to conclude in H2 2023.
Clifford Chance and A&L Goodbody LLP served as legal counsel and BNP Paribas as financial advisor to FDJ during the transaction process.
Vivienne Jupp, PLI chair, thanked the OTPP for its support and looked ahead to new ownership under FDJ.
Jupp said: “PLI has moved from strength to strength since winning the licence for the Irish National Lottery. I would like to thank Ontario Teachers’ and An Post for their support in building PLI into a leading European operator in the period since 2014.
“During that time, the team at PLI has delivered for good causes and the community and looks forward to the next chapter of growth, where we will be able to share best practices with FDJ and continue to operate a responsible world-class lottery for the people of Ireland.”
Stéphane Pallez, FDJ CEO, said: “I am delighted with the acquisition of Premier Lotteries Ireland, the operator of the Irish National Lottery and a long-standing partner in the EuroMillions community. Becoming the operator of a foreign lottery marks another major step in the FDJ Group’s international development.”
“This transaction is perfectly aligned with our international development strategy and our historical core business. It will enable FDJ to continue to grow while remaining true to its recreational, responsible and redistributive gaming model. We are looking forward to working together, taking the most of all collaboration opportunities,” the FDJ CEO added.
Elsewhere, FDJ announced a 6.3% year-on-year increase in H1 2023 revenue to €1.3bn and a net profit rise of 13.5% to €181m.
However, FDJ did post a 2.7% downturn in recurring EBITDA to €300m.