Lottomatica buys CIRSA (at 6x 2026E EV/EBITDA)

Italian gaming giant Lottomatica has finalized a merger agreement to absorb Spanish operator and sports betting company Cirsa, creating a leading global player in the sector. Cirsa shareholders will receive 0.668 new Lottomatica shares for each existing share they hold, granting current owners about 32.5% of the combined entity's capital.

Prior to the merger's completion, Cirsa will distribute an extraordinary dividend of €262 million, translating to 1.56 euros per share. The resulting company's shares will continue trading on Euronext Milan and will also be listed on Spanish stock exchanges. The merger is expected to be finalized in the second quarter of 2027, following which Cirsa will cease to exist as an independent legal entity.

Lottomatica and Cirsa claim their businesses are highly complementary and well-managed, combining to form the world's second-largest listed operator in gaming and sports betting with a pro forma EBITDA of around €2 billion. The transaction is projected to generate approximately €115 million in annual cash synergies, primarily through operating cost and interest savings, anticipated to materialize in the third full year post-closure.

Blackstone, Cirsa's majority shareholder, is likely to become the largest shareholder in the new company, holding roughly 24% of the capital. The new group's board will consist of 13 members, with Lottomatica's Guglielmo Angelozzi and Laurence Van Lancker retaining their positions, while Antonio Hostench and Antonio Grau will continue as Cirsa's CEO and CFO respectively.

Cirsa reported a net profit of €94.7 million in the first half of 2026, a 85% increase from the same period last year. The company also posted EBITDA of €396 million, a 8.4% rise, and net revenues increased by 9.1% to €1.26 billion. Cirsa went public less than a year ago on July 9, 2025, closing its first session at €15, above the €13.64 it ended at the previous trading day. The company's market value is approximately €2.3 billion.