Lottomatica and Cirsa agree merger to form ‘second-largest listed global operator’

Lottomatica and Cirsa have agreed to an all-share merger that will create the second-largest listed gaming and sports betting operator in the world, with a combined pro forma adjusted EBITDA of around €2 billion ($2.3 billion). The deal, announced on Wednesday, is expected to close in Q2 2027.

Under the terms of the transaction, Lottomatica will absorb Cirsa through an EU cross-border statutory merger, with Lottomatica continuing as the surviving entity. Cirsa has been valued at 6x its expected 2026 EBITDA of €800 million. Cirsa shareholders will receive 0.668 newly issued Lottomatica shares for each of their shares in Cirsa.

Once completed, current Lottomatica shareholders are expected to own around 67.5% of the share capital, with Cirsa’s shareholders owning the remaining 32.5%. Blackstone, Cirsa’s largest shareholder, is expected to become the largest shareholder of the combined company, maintaining around 24% of the share capital.

Market Leadership Across Southern Europe

According to a joint press release, the combined company would hold “undisputed leadership positions” in both Italy and Spain, with the group set to hold a dual listing on the Milan and Spanish stock exchanges. The group is expected to have an addressable market of up to €34 billion when combining all its available markets, including Portugal, Mexico and Colombia.

Lottomatica generated revenue of €2.26 billion in its FY2025, while Cirsa’s FY2025 group revenue reached €2.34 billion. The combined company would overtake the likes of Bally’s Intralot, Entain and Allwyn to become the second-largest listed global operator, behind only Flutter Entertainment in terms of combined adjusted EBITDA.

Some 80% of its EBITDA is expected to come from Italy and Spain, with 97% of its total EBITDA coming from markets in which it is the market leader. Online sports would make up 48% of its adjusted EBITDA, followed by distributed gaming (27%) and casinos (25%).

Synergies and Strategic Rationale

The deal is expected to provide around €115 million of pre-tax cash synergies per year from opex and interest cost savings. These synergies are expected to be realised by the third full year following completion. The enlarged group could deliver up to €4 billion in capital returns over the three years following the completion of the deal.

Lottomatica chairman and CEO Guglielmo Angelozzi noted the combination would create a more diversified business with significant opportunities for growth. “With the combination of Lottomatica and Cirsa, two extremely successful companies, we create the undisputed leader in Italy and Spain, among the best gaming markets globally, complemented by leadership positions in other very high growth geographies,” he said.

Cirsa CEO Antonio Hostench added: “I am delighted to embark on this exciting journey together. The combination of Cirsa and Lottomatica creates a world-class diversified gaming leader with leading positions across its core markets and significant opportunities to accelerate profitable growth.”

Leadership and Cirsa’s Acquisition Track Record

Angelozzi is set to serve as the combined company’s chairman and CEO, while Lottomatica’s deputy CEO and CFO Laurence Van Lancker will assume the same role. Hostench and Cirsa CFO Antonio Grau will also continue to lead the teams at Cirsa. Following the deal’s completion, the combined company’s board would consist of the existing 11 Lottomatica directors, as well as two new directors nominated upon designation by Blackstone.

Cirsa has followed an aggressive acquisition strategy in recent years, most recently entering the land-based casino market in Portugal by acquiring a majority stake in Sociedade Figueira Praia, S.A., the owner and operator of Casino Figueira. As of June 2025, the company had completed over 130 acquisitions since 2015.