ZEAL Network SE has agreed to acquire the remaining shares in UK digital prize draw operator SevenCanyon Limited, marking the German online lottery company’s entry into one of Europe’s largest markets for digital prize draw products.
The transaction will see ZEAL take control of 96.5% of SevenCanyon, with the company already holding a 3.5% stake. The acquisition gives ZEAL access to SevenCanyon’s established prize draw platforms, including 7days Performance, Redline Competitions and UK Carp Competitions.
ZEAL said the move supports its strategy of expanding through new products and additional markets. The company described SevenCanyon as an established and profitable operator, with the acquisition expected to contribute positively to ZEAL’s revenue and EBITDA after consolidation.
“SevenCanyon is one of the most successful prize draw operators in the UK – we have known them for years. With the acquisition, we hit the ground running in a highly attractive and growing market. We also accelerate the implementation of our strategy to selectively diversify our business model through new products and new markets”, says Dr. Stefan Tweraser, CEO of ZEAL Network SE.
SevenCanyon operates digital prize competitions offering non-cash prizes such as homes, vehicles and lifestyle products. During its most recent financial year covering April 2025 to March 2026, the company generated operating profit of more than GBP 10 million.
According to previously reported figures, SevenCanyon recorded revenue of £98.34 million and operating profit of £10.23 million during the 12-month period ending March 31, 2025.
ZEAL said the acquisition provides an immediate presence in the UK prize draw sector and creates opportunities to apply its experience in areas including customer acquisition, data analytics, retention strategies and platform management.
The company also expects the UK market to continue moving toward more formal regulatory standards, which it believes will benefit operators with established compliance structures.
Acquisition financed through new loan agreement
The purchase agreement includes an initial cash consideration of approximately £33.8 million for the remaining shares, subject to post-completion adjustments. ZEAL may also pay an additional earn-out amount of up to £4.8 million within six months after completion.
The acquisition will be supported by a €40 million term loan arranged by Deutsche Bank, with a seven-year duration.
ZEAL Chief Financial Officer Andrea Behrendt said the transaction allows the company to continue pursuing growth opportunities while maintaining financial flexibility.
“SevenCanyon is a highly profitable company with a proven business model. The purchase price will mainly be financed through a new loan agreement. This preserves our financial flexibility to continue our growth-oriented and shareholder-friendly capital allocation in the future”, says Andrea Behrendt, CFO of ZEAL Network SE, in the company’s press release.
ZEAL’s management expects SevenCanyon to make a significant contribution to the group’s financial results following completion of the deal. The company confirmed its 2026 EBITDA forecast of between €70 million and €75 million, assuming normal jackpot conditions in Germany.
The company said transaction-related expenses in the mid-single-digit millions of euros will affect the forecast, while the acquisition is expected to have a positive EBITDA impact in the high-single-digit millions during the first full financial year after completion.
UK prize draw sector attracts growing industry attention
The acquisition follows ZEAL’s previous indication that it was exploring opportunities outside its traditional lottery operations. The company had highlighted prize draws as an area with potential for expansion during its financial discussions earlier in the year.
The UK prize draw market has attracted increased attention because the sector operates under different regulatory conditions compared with traditional gambling products. The industry currently follows a voluntary code introduced by the Department for Culture, Media and Sport.
Market analysts have estimated that Britain’s prize draw competition sector generates around £1.3 billion in annual revenue and serves approximately 7.4 million active players.
ZEAL said its experience operating in regulated environments positions it to participate in the market as regulatory expectations develop.
Previous ZEAL leadership also identified prize draws as a potential area for product development, particularly because of their appeal among younger audiences.
The acquisition strengthens ZEAL’s presence beyond Germany and adds a new business segment alongside its existing online lottery activities. The company said SevenCanyon’s established operations and profitability provide a foundation for further expansion in the UK market.
The deal also follows broader efforts within the prize draw sector to create industry standards. A trade organisation known as the Prize Competition Council was recently established to support responsible practices, consumer protection measures and long-term market development.
Completion of the acquisition remains subject to the finalisation of transaction conditions.