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CVC Investment Company Acquires Sky Bet
- December 5, 2014 By Nemanja L. -
CVC Capital Partners is set to complete a purchase of the controlling stake in UK sports betting operator Sky Bet, it has been revealed. The private equity firm will pay £720 million for 80% stake in Sky Bet, while Sky will keep the 20% stake after the process is completed.
One of world’s largest broadcasting companies has agreed to receive £600 million once the deal is finalised, while they will be due further £120 million in contingent payments.
Many people will be surprised with Sky’s decision to sell the lucrative business having transformed Sky Bet into one of most successful gaming companies in the United Kingdom, but they have clearly decided to take advantage of what is a very good offer.
The agreed price represents some 15x EBITDA (Earnings before interest, taxes, depreciation and amortization) for the period of 12 months ending with 30th June 2014, mirroring the company’s steady growth over the last couple of years.
The acquisition includes all of Sky Bet’s gambling verticals – Sky Bet, Sky Vegas, Sky Casino, Sky Poker, Sky Bingo and UK’s number one odds comparison website Oddschecker. The deal is likely to be completed in the first quarter of 2015, subject to regulatory clearances in the UK and Ireland.
Sky Bet employees were certainly delighted to hear that the business will remain based out of Leeds, while all workers will be retained by the new owners. Sky Bet management team, led by managing director Richard Flint, will also remain in their positions once the takeover is complete.
About CVC Capital Partners
CVC Capital Parners is a privately owned equity company that specialises in management buyouts, and it was been in business since 1981. They have so far completed over 300 investments in various industries and hold approximately $71 billion in funds.
CVC currently has more than twenty offices in Europe, Asia and United States, and their portfolio of companies includes luggage company Samsonite, online payment processor Skrill, Belgian postal service Bpost and restaurant operator Skylark, among others.
The equity firm manages funds of over 300 investors worldwide, with the capital of their partners committed for a period of ten years or more to closed-end funds.