SkyBet Acquired By Online Gambling Giant Stars Group

Published Sunday, April 22, 2018 - Online-Casinos.com
SkyBet Acquired By Online Gambling Giant Stars Group

The big thing in the online gambling industry during its history has been the rapid expansion of companies through acquisitions and mergers. The newly renamed Stars Group formerly known as Amaya Gaming is one company that is growing in leaps and bounds with the recent announcement that the Canadian located gambling firm will purchase the UK firm Sky Betting & Gaming. The buyout will subsequently create the largest publicly listed betting company anywhere.

The Stars Group will benefit from the purchase which will expand exposure for its sports betting products as well as increased access to other markets. The arrangement which is subject to approval from the Toronto Stock Exchange, NASDAQ, and gambling regulators has been valued at $4.7 billion.

The sellers private equity firm CVC Capital Partners have an 80% stake with 20% still owned by the original owner Sky Plc. The terms of the agreement states The Stars Group will use cash and stock for the acquisition. The cash portion of the deal comes to $3.6 billion while the rest will be paid in 37.9 million newly-issued common shares. This is the gambling group’s second really large purchase deal in the past four years, following the purchase of PokerStars and Full Tilt Poker in 2014 for $4.9-billion.

The Stars Group has been looking at opportunities that would boost its sports betting and casino brands and reduce the current situation with the company’s focus revenue generator online poker.

The Stars Group has been on an acquisition spree of late with the announcement that it would buy a 62% stake in Australian betting operator CrownBet for $117.7 million and with this The Group has secured an entry into the fast expanding Australian gambling market. CrownBet’s acquisition of William Hill Australia will make it the third largest operator in the market. The recently formed merger of Tabcorp and Tatts will however create some stiff competition for the Stars Group enterprise.

 

 

 

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