Italian gaming group Lottomatica has unveiled a merger with Spanish gaming powerhouse Cirsa, which would, according to company officials, create a “global gaming champion.” The agreement will see the former company merge with the latter in an all-share deal.
The Deal Would Unlock Significant Synergies
Lottomatica, which has dominated Italy for years, is now considering growing its business internationally. The Cirsa merger will provide the emerging company with a strong presence in both Italy and Spain, two key European markets. Experts project annual adjusted EBITDA of roughly EUR 2 billion ($2.3 billion) for the resulting “global gaming champion.”
For reference, the merger will position Lottomatica shareholders as the owners of 67.5% of the shares in the combined company. Cirsa shareholders, on the other hand, will own 32.5%, of which Blackstone, the current owner of Cirsa, will own 24%.
Before the deal closes, Cirsa shareholders will receive a dividend of EUR 1.56 ($1.81) per share for a total of EUR 262 million ($303.7 million). After the merger’s completion, the combined company is expected to return capital to shareholders equal to EUR 744 million ($862.4 million) via a partial voluntary tender offer and/or extraordinary dividend.
Speaking of returning value, the announcement noted that buybacks will continue both before and after the deal closes. The share buyback efforts are expected to return some EUR 4 billion ($4.6 billion) to shareholders over the next 3 years.
Experts believe that three years post completion, the merged business’ synergies would amount to EUR 115 million ($133.3 million). At completion, the company’s net leverage will stand at roughly 2.7x, but officials believe that their deleveraging target would lower it to a range 2.0-2.5x.
The Resulting Business Will Retain the Old Leadership
The announcement also unveiled details about the combined company’s leadership team, confirming several roles, as follows:
- Chairman and CEO: Guglielmo Angelozzi
- Deputy CEO and CFO: Laurence Van Lancker
- CEO of CIRSA: Antonio Hostench
- CFO of CIRSA: Antonio Grau
For reference, Angelozzi has been serving as chief executive officer of Lottomatica since 2014 and chair since 2025. Van Lancker is also Lottomatica’s current financial officer. Likewise, Cirsa’s CEO and CFO, Hostench and Grau, will retain their positions.
The announcement added that two additional directors will be nominated by Blackstone. Speaking of Blackstone, the asset manager seems to be highly optimistic about the combination of Lottomatica and Cirsa, considering that it did not opt to exit its investment. At the same time, other analysts seemed somewhat unimpressed by the arrangement, with Regulus Partners calling its targets “staggeringly unambitious.”