The Stars Group to Acquire Sky Betting & Gaming For $4.7 Billion

Teemu - Sunday, April 22, 2018, Written by- Sunday, April 22, 2018, Online poker

The parent company of PokerStars, The Stars Group, has agreed to acquire Sky Betting & Gaming for $4.7 Billion.

According to The Stars Group, the acquisition will create the world’s largest publicly listed online gaming company.

The press release also states, that Sky Betting & Gaming (SB&G) is currently home to the United Kingdom’s largest active online player base. Some of the most well-known SB&G brands include Sky Bet, Sky Vegas and Sky Casino.

”SB&G operates one of the world’s fastest growing sportsbooks and is one of the United Kingdom’s leading gaming providers. SB&G’s premier sports betting product is the ideal complement to our industry-leading poker platform. The ability to offer two low-cost acquisition channels of this magnitude provides The Stars Group with great growth potential and will significantly increase our ability to create winning moments for our customers,” The Stars Group Inc Chief Executive Rafi Ashkenazi said.

The Stars Group also states, that the merger will bring many operational and financial benefits to the company, including:

Greater revenue diversification and significantly enhanced exposure to sports betting, the world’s largest and fastest growing online gaming segment, as the majority of SBG’s revenues are generated by sports betting.

An increased presence in regulated markets, particularly within the United Kingdom, the world’s largest regulated online gaming market.

The development of sports betting as a second low-cost customer acquisition channel, complementing The Stars Group’s core poker business and enabling more effective cross-sell to players across multiple verticals.

Improved products and technology as a result of the addition of SBG’s innovative casino and sports book offerings, and portfolio of popular mobile apps.

Identified cost synergies of at least $70 million per year.

For the full press release, see here.