CVC buys Sisal for €1bn

Amedeo Goria
01 June 2016

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Private equity firm CVC Capital Partners has acquired Italian gaming and payments operator Sisal for €1bn from Permira, Apax Partners and Clessidra Capital Partners.

As part of the deal, CVC wholly acquired the business, which was valued at €1bn. The vendor syndicate included buyout firm Permira, which sold its 20% stake in the business, alongside Apax Partners and Clessidra, which each reportedly divested a 36.5% stake.

Morgan Stanley, Credit Suisse and Unicredit provided debt financing to support the transaction.

The firm intends to use the capital injection to boost its expansion in several market areas, including payment services, and bolster its online gaming and betting platform.

According to press reports, Blackstone, Carlyle, PAI Partners, Apollo and Bain Capital all took part in the auction process led by Deutsche Bank and UBS. Apollo and Bain were reported to be the final bidders competing for the business alongside CVC.

The deal marks the fourth investment in the gaming sector for CVC. In February 1999, the GP acquired British betting shop chain William Hill for €1.2bn. More recently, CVC purchased UK-based gaming operator Sky Bet for £720m in December 2014, and Malta-based competitor Tipico for €1.1bn in April 2016.

Previous funding
In June 2003, 21 Centrale Partners acquired a majority stake in Sisal. Subsequently, Clessidra bought a 60% stake in a €400m SBO in April 2005.
Apax and Permira acquired together 43% of the holding company in October 2006, while Clessidra retained a 20% stake. According to unquote" data, CVC was also competing for the deal, alongside Arle Capital Partners.

Company
Established in 1946 and headquartered in Milan, Sisal operates in the gaming market and also offers several payment services. The company was the first Italian company to operate in the sector licensed by the government. Its products include Totocalcio, Tris, Enalotto and MatchPoint.

The business employs 2,000 people. In 2015 it posted a turnover of €787m and €182.3m of EBITDA.

People
CVC Capital Partners – Giampiero Mazza (partner).
Permira – Roberto Biondi (partner).
Apax Partners – Giancarlo Alberti (partner).
Clessidra – Simone Cucchetti (partner).
Sisal – Emilio Petrone (CEO).

Advisers
Equity – Morgan Stanley (M&A); Bain & Company (commercial due diligence); AT Kearney (commercial due diligence); PwC (financial due diligence); Latham & Watkins (legal); Fracchini Rossi e Soci (tax).
Vendor – Deutsche Bank (M&A); UBS (M&A); Legance Studio Legale Associato (legal); Studio Maisto (tax); Di Tanno e Associati (tax).
Debt – Linklaters (legal).