Consideration for the purchase was a combination of cash and in the region of 37.9 million newly issued common shares, the former of which was financed via cash on the balance sheet, proceeds from The Stars Group’s recent equity offering and newly issued debt.
PokerStars’ owner first agreed a deal to buy Sky Bet and its various brands from owners CVC Capital Partners and media giant Sky PLC in April. The Stars Group said the deal “dramatically improves our revenue diversity, creating a balanced spread across poker, casino and sportsbook with a broad geographic reach.”
Sky Bet is already one of the UK’s leading betting operators. Last year its revenues soared by 38% to £516m, with customers increasing by 31% to 2.6 million. Profit before tax grew by 38% to £146m in the period up to June 30, compared to £105m in 2016.
Rafi Ashkenazi, The Stars Group’s chief executive officer, commented: “This acquisition represents a pivotal moment in The Stars Group’s evolution. SBG’s mobile-focused sportsbook pairs well with our industry-leading poker offering to create two premier customer acquisition channels.”
“We believe this combination along with our combined online casino offerings positions The Stars Group for continued growth in the evolving online gaming industry,” he added.