Online gambling giant Flutter Entertainment has announced plans to acquire the UK online bingo operator Tombola for an enterprise value of £402m ($543m).
In the announcement, the online bingo operator Tombola was described as “the UK’s most recreational online bingo operator.”
Flutter to acquire Tombola
Today, Flutter announced plans to acquire the UK-based online bingo operator Tombola in a £402m deal.
As outlined in the announcement, Flutter will pay the full consideration in cash and upon completion will take complete charge of Tombola.
Flutter explained that the addition of Tombola to its portfolio would deliver several key strategic advantages which include diversification of Flutter’s products, the addition of an engaged and sustainable player base, and an enhancement of Flutter’s online gaming presence in its core UK market.
On top of this, Flutter will benefit from the addition of further product capabilities and expertise and, according to the announcement, the acquisition aligns with Flutter’s safer gambling strategy.
Flutter expects to complete the acquisition in the first quarter of 2022, subject to merger control clearance from the UK Competition and Markets Authority.
Peter Jackson, Flutter Chief Executive, said: “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. 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.”
A bit about Tombola
Tombola has teams primarily located in Sunderland and Gibraltar and is a successful bingo-led gaming company with an emphasis on providing a low-staking bingo proposition to a highly engaged customer base.
In its announcement, Flutter talked up the fact that Tombola was the first major UK-focused operator to introduce both mandatory staking and deposit limits and has built a highly sustainable player base over the last 16 years.
The announcement also explained that Tombola has a fully regulated revenue base with over 80% coming from the UK and 16% from Italy and Spain. On top of this, the operator boasts a vibrant player community that acts as brand ambassadors along with 400,000 average monthly players. The bingo operator also employees more than 700 staff across its operations.
In its financial year to end April 2021 Tombola generated £120m in revenue and £9.4m in net profit. Tombola also generated pro forma revenue of £164m and EBITDA of £38.5m