The Stars Group Acquire Sky Betting & Gaming For £3.36 Billion
The Stars Group whose major brand is world leading online poker site PokerStars has announced the acquisition of Sky Betting and Gaming for a total value of £3.36 billion, in which CEO of The Stars Group says will create the worlds largest online gaming company.
In a deal announced over the weekend the Toronto listed gaming giant almost an 85% share holding in Sky Betting and Gaming. CVC the private equity firm who had a 70% stake in Sky and SKy Plc who sold the majority shares to CVC originally have now reduced their stake to 12% and 3% respectively.
“The acquisition of Sky Betting and Gaming is a landmark moment in The Stars Group’s history,” its chief executive officer Rafi Ashkenazi said.
Sky Betting and Gaming have had strong growth over the last two years with last year Sky Betting and Gaming reporting customer based figures rising by over half a million along with revenues soring to £624 million with profits hitting £212 million for 2017. The Stars Group also said it expected to make some £50 million in cost cutting savings once the companies are fully integrated.
The last two years revenues and profits have risen by an impressive 46% and 51% respectively.
Now with the recent acquisitions by The Stars Group of William Hills Australian business and majority shares in another Australian business CrownBet the Toronto based firm are looking to compete with GVC Holdings who recently acquired Ladbrokes Coral along with current businesses BwinParty and others.
The Stars Group are seriously looking to move away from its reliance on its PokerStars brand for revenues and make a strong move into sports betting. The deal will have to be approved by regulators and competitions authority and if successful will be completed by the third quarter of 2018.