# Flutter Entertainment acquires gaming company Tombola

- Link: https://www.directorstalkinterviews.com/flutter-entertainment-acquires-gaming-company-tombola/4121033969
- Published: 2021-11-18T07:26:27+00:00
- Author: Amilia Stone

**[Flutter Entertainment plc](https://www.directorstalkinterviews.com/ftse-company/flutter-entertainment/fltr.l)**(
LON:FLTR) has announced the acquisition of Tombola, one of the UK market’s leading
online bingo operators, for an enterprise value of £402m.

Tombola, with teams primarily located in Sunderland and Gibraltar, is a successful
bingo-led gaming company with an emphasis on providing a low staking bingo proposition
to a highly engaged customer base. Tombola was the first major UK focused operator
to introduce both mandatory staking and deposit limits, building a highly sustainable
player base over the last 16 years. The key features of the business are as follows:

·    Fully regulated revenue base with over 80% coming from the UK and 16% from 
Italy and Spain

·    A market leading bingo proposition with a vibrant player community acting as
brand advocates

·    Revenue CAGR of 23% over the last 5 years^(1  )

·    Circa 400,000 average monthly players (AMPs)^(2) with over 700 employees

The addition of Tombola to the Flutter portfolio delivers several key strategic 
advantages:

·    **Diversification of Flutter Entertainment’s products, **expanding the Group’s
position in a product vertical in which it has historically under-indexed

·    **Addition of an engaged and sustainable player base,** with many customers
active with the brand for multiple years

·    **Enhancement of Flutter’s online gaming presence in its core UK market,** 
at an attractive valuation

·    **Addition of further product capabilities** **and expertise**

·    **Aligns with Flutter’s safer gambling strategy** of expansion in our recreational
customer base

In its financial year to end April 2021 Tombola generated pro forma revenue of £
164m and EBITDA of £38.5m. Under the terms of the transaction, Flutter will pay 
£402m in cash upon completion for 100% of the business. The transaction is conditional
on merger control clearance by the UK Competition and Markets Authority and is expected
to complete in Q1 2022.

> **Peter Jackson, Flutter Entertainment Chief Executive, commented**:
> “As the world’s leading online gambling operator, Flutter is delighted to add 
> Tombola, the UK’s premier bingo brand to the Group. Tombola is a business we have
> long admired for its product expertise, highly recreational customer base and 
> focus on sustainable play. The brand aligns closely with Flutter’s safer gambling
> strategy, a key area of focus for us. I am excited to combine Flutter’s digital
> marketing expertise with Tombola’s operational capabilities within the UK & Ireland
> division. As the time comes for Phil to hand over the reins, I would like to thank
> him for building the success story that the business is today, and I look forward
> to welcoming the Tombola team to Flutter and growing a sustainable business for
> the future together.”

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