CVC acquires Sky Bet in £800m deal

The buyer stated the valuation represents a multiple of approximately 15x EBITDA.

Following completion of the deal, UK broadcaster Sky, formerly British Sky Broadcasting, will retain a 20% stake in the business. Sky Bet's existing management and employees will also remain in place under the new ownership structure, according to a statement released by CVC.

The Telegraph reports Sky will receive an upfront payment of £600m with a further £120m due at a later stage.

The deal comes shortly after Sky strengthened its European broadcasting proposition with the acquisition of the Sky Italia and Sky Deutschland brands from 21st Century Fox. The broadcaster, which strongly promotes Sky Bet through its Sky Sports channels and mobile apps, said it will continue to support the brand across its platforms.

The transaction is scheduled for regulatory approval in Q1 2015.

Company
Founded in 2001 as a subsidiary of London-headquartered broadcaster Sky, Sky Bet is an online betting and gaming company. The business operates the Sky Bet, Sky Vegas & Sky Casino, Sky Poker and Sky Bingo brands.

People
Rob Lucas is managing partner of CVC. Richard Flint is managing director of Sky Bet.

Advisers
Equity – OC&C Strategy Consultants (M&A); PwC (Corporate finance); Freshfields Bruckhaus Deringer (Legal).
Vendor – Goldman Sachs (Corporate finance); Deloitte (Corporate finance); Herbert Smith Freehills (Legal).
Management – Debevoise & Plimpton (Legal).

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• Topics
• Buyouts
• UK / Ireland
• Consumer
• United Kingdom
• CVC Capital Partners