Flutter Entertainment has obtained a 51% stake in MaxBet for the amount of 141 million euros, equivalent to $149 million, via a cash payment. MaxBet is a multi-channel sports betting and gaming company established in Serbia.
According to Flutter, the agreement states that they will be offered connectivity with the regulated markets in Serbia and help in furthering their plans of spreading out to the entire Balkans territory. Flutter will also have the option of buying out the remaining 49% stake in MaxBet by 2029.
According to betting news, MaxBet is known to be the top operator in Serbia and has a 20% share of the online space. The company boasts of having over 2,400 staff members. In June 2023, MaxBet declared it had earned 145 million euros in terms of regulated revenue, along with 32 million euros with regards to adjusted EBITDA. The transaction depends on the required regulatory provisions and will take place in the first quarter of 2024.
According to the Chief Executive of Flutter, Peter Jackson, the takeover of MaxBet will lead them closer to their goal of spreading their business in regulated markets. In his opinion, the acquisition of MaxBet is similar to what they have done in places like Georgia, Italy, and India.
Flutter does not divulge much about its M&A operations in 2023. Apparently, the company’s aim is to increase its business via M&A. In 2022, Flutter managed to take over several companies. The highlighting factor was the buyout of Sisal, an online gaming and lottery operator in Italy, to the tune of 1.90 billion euros. In the early part of 2022, Flutter took over Tombola, which is a bingo operator, for the amount of 402 million euros. This helped the company increase its share in the bingo space.
During the first six months of 2023, Flutter spoke about the advantage of buying out Sisal and attributed the factor to its increasing revenue earnings in Italy. Turkey also played a role in this, where Sisal runs the national lottery. The company posted group revenue until June 30, 2023, to increase by 41.9%, equivalent to 4.81 billion euros. The net loss turned into a profit amounting to 128 euros and a rise in EBITDA of 76.3%, or 765 million euros.
At the time when the takeover came through, 2022 revenue rose by 27% YoY to 7.69 billion euros. This does not include the Sisal deal. Flutter observed that the acquisition of Tombola increased UK and Ireland revenue by 4%.
In addition to Flutter, Entain CEE paid €750 million to acquire STS Holding, a Polish sportsbook provider. The company has now made two acquisitions. Entertain CEE was established with the purchase of SuperSport for 690 million euros. Mikolaj Cymerman, head of corporate development for Entain CEE, disclosed the company’s future plans to iGB in August 2023.