Flutter Entertainment seals £402m tombola acquisition
Dublin-headquartered industry giant makes move for bingo operator to expand product portfolio and bolster player base
Flutter Entertainment is set to acquire leading UK online bingo operator tombola in a deal worth £402m.
Under the terms of the agreement, Flutter will pay £402m in cash for 100% of the Sunderland-based firm as it looks to expand its product ecosystem.
Flutter highlighted five key strategic advantages that would come with adding tombola to the group’s portfolio.
The FTSE 100 firm said the addition of tombola would allow for a greater diversification of product, a strengthened presence in the UK market and added tech expertise.
Flutter also highlighted tombola’s existing “engaged and sustainable player base”, which amounts to an average 400,000 monthly players, as a key reason for the purchase, along with tombola’s alignment with Flutter’s safer gambling strategy.
In the financial year to end of April 2021, the bingo operator generated revenue of £164m and an EBITDA of £38.5m.
Tombola boasts a fully regulated revenue base from its operations in the UK, Spain and Italy and has posted a revenue CAGR of 23% over the last five years.
Tombola was also one of the first tranche of operators to secure a licence in the newly regulated online market in the Netherlands, presenting an additional opportunity for Flutter to expand its geographical presence.
The transaction is expected to complete in Q1 2022 subject to clearance by the UK Competition and Markets Authority and other standard regulatory checks.
Peter Jackson, Flutter CEO, said: “As the world’s leading online gambling operator, Flutter is delighted to add tombola, the UK’s premier bingo brand, to the group.
“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 and Ireland division,” he added.
Jackson went on to pay homage to tombola CEO and founder Phil Cronin and welcomed the rest of the team to the Flutter brand. Cronin, who founded tombola 16 years ago, will step away from the business entirely following the conclusion of the sale.
He concluded: “As the time comes for Phil to hand over the reins, I would like to thank him for building the success story that the business is today, and I look forward to welcoming the tombola team to Flutter and growing a sustainable business for the future together.”