(Bloomberg) -- Flutter Entertainment has struck a deal to buy Italian gambling operator Sisal in a 1.62 billion-pound ($2.2 billion) deal, marking the second major takeover by the U.K. firm in as many months.
Flutter will buy Sisal, Italy's oldest gaming company, from CVC Capital Partners Fund VI, according to a statement Thursday, and the all-cash deal will likely close in the second quarter of 2022.
The takeover marks yet another merger in the rapidly consolidating gambling industry, sparked by the U.S. Supreme Court's liberalization of gambling laws, which has spurred competitors to undertake a land grab for customers.
In November Flutter agreed a deal for online bingo operator Tombola Ltd for 402 million pounds, in a bid to diversify its products and increase its online gaming presence in the U.K.
Read More: Gaming company Sisal targets IPO with wink to ESG investors
Sisal had previously filed a request for an IPO on the Milan Exchange, according to a statement. CVC originally bought Sisal Group in 2016 for 1 billion euros.
The deal is “attractive for a market-leading position in Italy and further exposure to fast-growing regulated markets,” Jefferies analysts said in a client note.
Sisal focuses on gaming and betting services in Italy, managing games including Totocalcio, Totip, and SuperEnalotto. The company's retail channel will be targeted by existing Flutter brands PokerStars and Betfair, while Sisal's casino product will get access to Flutter's in-house gaming content.
Flutters shares rose as much as 2.9% in early trading in London.
The takeover will be financed by way of additional Flutter debt facilities, agreed with Barclays
Flutter to Buy Sisal From CVC for GBP1.62b: M&A Snapshot
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