Flutter Entertainment has announced that it has agreed to acquire UK online bingo operator Tombola in a deal that is worth £402 million $543/€479.2 million).
Tombola generated revenue of £164 million ($221/€195.5 million) and EBITDA of £38.5 million in the financial year ending April 2021.
The deal is a straight cash deal for 100% of the business and will be completed in the first quarter of 2022 once it has been approved by the UK Competition and Markets Authority.
Flutter, who has been in the news recently for some flagrant rule breaches including emailing recovering gambling addicts with free spins, was quick to point out that the acquisition aligns with the company’s safer gambling strategy of expansion in its recreational customer base.
Aside from the obvious benefit of access to a new customer case, Flutter will also be in a position to diversify its product range while adding further product capabilities and expertise.
In a statement released by Flutter, Chief Executive Peter Jackson 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.”
Speaking of Tombola founder Phil Cronin, he added:
“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.”
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.