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Flutter Entertainment said it has acquired Tombola, the UK-based online bingo specialist, for an enterprise value of £402m.
Flutter said the acquisition would diversify its product base and boost its presence in its core UK market.
Tombola is also focused on regulated markets, with 80 percent of its business coming from the UK and 16 percent coming from Spain and Italy, Flutter said in announcing the deal.
Tombola was also among the first ten companies granted licences in the Netherlands on October 1, which has given it a jump on major rivals such as Entain, Kindred Group and Betsson.
No Flutter brands were among those approved for the Dutch market launch.
Tombola, based in Gibraltar and Sunderland, England, has a “highly engaged” customer base playing for low stakes, Flutter said.
It was also the first major UK operator to introduce mandatory staking and deposit limits, according to the company.
Tombola fits Flutter’s recent focus on safer gambling, the company said.
“Tombola is a business we have long admired for its product expertise, highly recreational customer base and focus on sustainable play,” Flutter chief executive Peter Jackson said.
“I am excited to combine Flutter's digital marketing expertise with Tombola's operational capabilities within the UK and Ireland division,” he said.
Tombola has 400,000 average monthly players and employs about 700 people, Flutter said.
In the fiscal year ended April 2021, Tombola generated EBITDA of £38.5m on pro forma revenue of £164m, the company said.
Tombola founder Phil Cronin will leave the company after the closing of the deal.
The deal, which needs regulatory approval, is expected to be completed in the first quarter of next year.
Flutter already owns brands including Sky Bet, Paddy Power, Betfair, FanDuel, PokerStars and Australia’s SportsBet.
