Sky Bet owner CVC acquires majority stake in Tipico

Sky Betting & Gaming-owner CVC Capital Partners (CVC) has acquired a majority stake in German sports betting operator Tipico for an undisclosed sum.

The deal is expected to close in the third quarter of 2016, pending approval from anti-trust authorities.

The deal reportedly values Tipico at around ?1.1bn, with funds advised by CVC taking a 60% stake in the business, according to a Reuters source.

The operator’s existing private owners will remain shareholders in the company.

The two companies said in a statement that Tipico would benefit from CVC’s “extensive industry expertise”, most notably from their experience as the majority owner of Sky Bet while CVC previously had investments in William Hill and the IG Group.

There is no indication the deal will see Sky Bet and Tipico will combine resources or have any impact on Sky Bet’s plans to enter the German market.

CVC was considered to be one of two main contenders in the bidding process for Tipico, against a consortium made up of private equity firm Centerbridge and Deutsche Telekom.

Tipico is the largest sports betting operator in Germany and operates more than 1,000 betting shops alongside its web and mobile site.

The operator’s regulatory standing is somewhat unclear thanks to ongoing legal wranglings in Germany, but last week the firm won a court ruling that said limiting the amount of sports betting licences in the country to 20 was against EU law.

A source informed of the situation told EGR that all potential bidders in the process were comfortable with Tipico’s regulatory footing.