Flutter Entertainment will be making a new acquisition, Tombola, a UK-based online bingo provider, for £402 million.
The sports betting operator will entirely own Tombola once the transaction is made. With this, they are set to benefit from strategic advantages that include the opportunity to grow into sectors where the company has been far less developed.
Peter Jackson, Flutter CEO, remarked that Tombola has always been respected for its industry knowledge, extremely entertaining core audience, and commitment to long-term play. He went on to say:
“Flutter’s more regulated gaming approach, which is a significant domain of interest for us, is strongly connected with the name. Within the UK and Ireland branch, I’m looking forward to joining Flutter’s digital advertising skills with Tombola’s operational expertise.”
Tombola was also the first to implement stake and place necessary limitations. Flutter mentioned Tombola’s clients, engaged and long-term customers who have been involved with the business for several years. With 700 staff members, Tombola has around 400,000 monthly visitors.
Tombola, operating in the UK for 16 years, produced 80% of its income in the UK, and the 16% was derived from Italy and Spain.Tombola, who had recently gone live in the Netherlands, after being given a license for the recently set Dutch market, achieved £120 million in income and £9.4 million in net profit in the 2019-20 fiscal year, which finished on April 30, 2020.
Jackson also referred to Phil Cronin, the founder and CEO of Tombola:
“As Phil prepares to hand over the keys, I’d like to acknowledge him for helping to create the company into the sensation that it is today, and I’m looking forward to welcoming the Tombola group to our team and working together to establish a sustainable corporation along the way.”
The entire transaction will be conducted in cash. Flutter plans to finalize the purchase in Q1 2022, pending regulatory permission from the UK Competition and Markets Authority.
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