Flutter Sets Sights on UK Bingo Operator Tombola
Flutter Entertainment (LON: FLTR) has announced that it is to acquire the UK-facing online bingo operator Tombola for an enterprise value of £402 million. Flutter will be paying the full amount in cash upon completion of the deal and take complete control of Tombola.
According to Flutter, the acquisition of Tombola will give it a number of key strategic advantages, including a significant expansion of its position in an area where it has always been fairly weak (online bingo). Flutter also highlighted Tombola’s engaged and sustainable player base, pointing out that many players stay with the brand for years.
Tombola has been active in the UK for 16 years. More than 80% of its revenue comes from the UK, while 16% comes from Italy and Spain. It has roughly 400,000 monthly users and it employs over 700 staff. In the 2019-20 financial year, Tombola generated revenues of £120 million and net profit of £9.4 million.
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.
Jackson went on to thank Phil Cronin, the founder, and chief executive of Tombola, for “building the success story that the business is today”. He added, “I look forward to welcoming the Tombola team to Flutter and growing a sustainable business for the future together.”
It is expected that the acquisition will be complete in the first quarter of next year as long as it receives merger control clearance from the UK Competition and Markets Authority.
In September, Tombola was named as one of the few operators to be awarded a license in the newly regulated Dutch market. The brand then launched in Holland last month when the market opened on 1 October.
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