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(Alliance News) - Flutter Entertainment PLC on Thursday said it will part with over GBP400 million to buy online bingo company Tombola Ltd.
Tombola, which has offices in England's North East region, as well as Gibraltar, is a business the Paddy Power owner has "long admired".
"Tombola was the first major UK focused operator to introduce both mandatory staking and deposit limits, building a highly sustainable player base over the last 16 years," Flutter said.
Tombola is being acquired for an enterprise value of GBP402 million.
The new acquisition generated pro-forma revenue of GBP164 million in the year ended April 2021. Adjusted earnings before interest, tax, depreciation and amortisation came in at GBP38.5 million. Flutter said 80% of Tombola's revenue comes from the UK.
The deal needs merger control clearance by the UK Competitions & Markets Authority. Flutter expects the buy to be sealed in the first quarter of next year.
"As the world's leading online gambling operator, Flutter is delighted to add Tombola, the UK's premier bingo brand to the group. 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 & Ireland division," Flutter Chief Executive Peter Jackson said.
Tombola was founded by Phil Cronin.
"As the time comes for Phil to hand over the reins, I would like to thank him for building the success story that the business is today, and I look forward to welcoming the Tombola team to Flutter and growing a sustainable business for the future together," Flutter's Jackson added.
Flutter's Sky Bet arm also offers bingo services through its Sky Bingo brand.
Flutter shares were 0.8% higher at 11,785.00 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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