Italy’s Lottomatica and Spain’s Cirsa have agreed to merge, creating what the companies expect to become the world’s second-largest listed gaming and sports betting operator by adjusted EBITDA. The transaction is expected to close in Q2 2027.
The combined group is expected to generate around €2 billion ($2.3 billion) in pro forma Adjusted EBITDA and will be listed on the Italian and Spanish stock exchanges.
Lottomatica shareholders will own 67.5%
The transaction will be structured as an EU cross-border statutory merger, with Lottomatica remaining the surviving legal entity.
Following completion, existing Lottomatica shareholders are expected to own around 67.5% of the combined company, while Cirsa shareholders will hold 32.5%. Cirsa shareholders will receive 0.668 newly issued Lottomatica shares for each Cirsa share.
Blackstone, Cirsa’s largest shareholder, is expected to become the largest shareholder of the enlarged group with approximately 24% of the share capital.
Deal expected to generate €115M in annual synergies
Lottomatica and Cirsa expect around €115 million ($134 million) of annual pre-tax cash synergies from operating expense and financing cost savings.
The full run-rate benefit is expected to be achieved by the third full year after completion.
Cirsa’s implied value represents approximately 6x its expected 2026 EBITDA, which is forecast at €800-820 million ($930-950 million).
Italy and Spain will drive the combined group
The enlarged company is expected to hold leading positions in Italy and Spain, while its combined addressable market is estimated at up to €34 billion ($39 billion) across markets including Portugal, Mexico and Colombia.
Around 80% of group EBITDA is expected to come from Italy and Spain, while approximately 97% is expected to come from markets where the group holds a leadership position.
Online sports is forecast to account for 48% of adjusted EBITDA, followed by distributed gaming at 27% and casinos at 25%.
Lottomatica’s online and omnichannel capabilities are expected to accelerate Cirsa’s expansion in online gaming.
Combined group would rank behind Flutter
Based on the companies’ projections, the enlarged group would overtake Bally’s, Intralot, Entain and Allwyn to become the second-largest listed global gaming operator after Flutter Entertainment by adjusted EBITDA.
Lottomatica reported €2.26 billion in FY2025 revenue, while Cirsa generated €2.34 billion.
The combined group could also return up to €4 billion ($4.6 billion) to shareholders during the three years following completion, according to the companies.
The transaction remains subject to corporate and regulatory approvals. If completed, it will rank among the largest M&A deals in the European gaming sector in recent years.
Source: Lottomatica / iGaming Business
