Canadian gaming company in $4.7bn swoop for Leeds-based Sky Betting & Gaming

Canadian gaming company The Stars Group Inc. has this morning (April 23) announced a multi-billion pound agreement to acquire Sky Betting & Gaming (SBG).

The Toronto-headquartered firm will pay $4.7bn (c.£3.4bn) in a cash-and-stock transaction to buy SBG from media giant Sky plc and investors CVC Capital Partners.

The deal is expected to diversify Stars Group’s revenues and enhance the company’s footprint in the sports betting arena, where the majority of SBG’s revenues are generated.

It will also give the company a bigger presence in the UK – the largest regulated online gaming market in the world.

SBG, which includes the Sky Bet, Sky Vegas and Sky Casino brands, currently boasts the biggest active online player base of all gaming companies in the UK.

The firm pulled in revenues of £624m and an adjusted EBITDA of £202m in the 12 months to December 31 2017.

Richard Flint, Sky Betting & Gaming’s CEO, said: “We are delighted to join forces with The Stars Group.

“We have had a fantastic last few years and would like to thank CVC and Sky for supporting us in becoming a leading online operator in the UK.”

He added: “This transaction allows us to offer our best-in-class products to a truly global audience. We’re excited about our future together.”

Following the acquisition, SBG’s Leeds headquarters will serve as a major hub for the enlarged group.

Rafi Ashkenazi, chief exec of the The Stars Group Inc, commented: “The acquisition of Sky Betting & Gaming is a landmark moment in The Stars Group’s history.

“SBG operates one of the world’s fastest growing sportsbooks and is one of the United Kingdom’s leading gaming providers. SBG’s premier sports betting product is the ideal complement to our industry-leading poker platform.”

He continued: “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.”