Lottomatica and Cirsa approve cross-border merger

The boards of directors of Spanish company Cirsa and Italian company Lottomatica have approved a cross-border merger project. The deal will create a global gaming and sports betting giant with a combined business value of 34 billion euros.

Under the terms of the agreement, Cirsa will be absorbed by Lottomatica, which will remain the resulting legal entity based in Rome. The merger is expected to create the world’s second-largest listed gaming and sports betting operator, with an adjusted EBITDA of approximately 2 billion euros. Following the merger, Cirsa's shares will represent roughly 32.5% of Lottomatica's capital, and Blackstone is expected to become the largest shareholder with approximately 24% of the capital.

Dividends to shareholders are projected to reach up to 4 billion euros in the three years following the close of the merger. Guglielmo Angelozzi will continue as Chairman and CEO of the merged entity.