Lottomatica front of queue as Sisal owners prepare for exit
IGT-owned firm understood to be in talks over a potential tie-up with Italian gambling giant
Sisal, one of Italy’s major sportsbook and gaming brands, is in talks to sell the business with local rival Lottomatica in pole position to seal a deal expected to be worth in excess of £1bn, eGaming Review understands.
The operator, which is 97% owned by private equity funds Permira, Apax and Clessidra, has long been rumoured to be on the block with news of the latest talks coming a year after the firm cancelled plans to launch an IPO.
Speaking to eGR this morning, a spokesperson for Sisal confirmed negotiations were taking place with a number of suitors but said a deal had yet to be agreed.
“Talks with potential partners are ongoing, but there are no agreements to date,” the spokesperson said.
“The company’s top executives, alongside shareholders, are going to carry on the process of evaluation of possible options, in order to support the company development, in favour of all our stakeholders,” the spokesperson added.
It is understood that Lottomatica, which is now controlled by IGT following its recent merger with GTECH, is currently in the box seat with exploratory discussions between the pair dating back more than two years.
However, negotiations are thought to be progressing slowly due to strategic differences between the firms and a number of other interested parties, including operators and private equity firms such as Apollo and Blackstone, are believed to be waiting in the wings.
Sisal is one of Italy’s biggest operators, albeit overwhelmingly land-based with just 6% of the 820m gross gaming revenues recorded in 2014 derived via its online gaming products.
Land-based operators have come under financial pressure in Italy after they were recently hit with a 500m ‘stability tax’ by government, with all gaming machine and VLT operators required to pay their share of the one-off levy by the end of the year.