Stars Group Successful In SBG EndeavourHarry Coulter | 12 Jul 2018
A while ago, casino news pages were awash with speculations regarding the acquisition of Sky Betting and Gaming (SBG) by the Stars Group. The reason for the excitement was that, if the Stars Group were to go ahead with the purchase of the sports book and casino enterprise from CVC Capital Partners and Sky Plc, it would effectively create the world’s largest iGaming firm.
And now, this is exactly what has happened.
The details of the deal were announced previously when the intended purchase was making headlines, and it seems now as if it has been concluded on those very terms. The purchase price was set at $4.7bn would comprise of all assets as well as general stocks. $3.6bn of the price was to be paid in cash and the remainder to be secured by common shares that were estimated to be worth in the region of $1.1bn.
The cash portion was financed by means of newly acquired debt, including $100 million drawn from the group’s revolving credit facility. $4,567 million was gained from first lien term loans, and the remaining portion of $1,000 million in unsecured senior notes that will become due and payable in July of 2026.
Stars Group Now Heads Industry
Chief Executive Officer, Rafi Ashkenazi, announced the successful conclusion of the purchase deal, saying that the group’s excitement knew no bounds, as the Stars Group is now the single largest listed iGaming company. SBG drives a mobile-focused sports book and this compliments the group’s Poker offering perfectly.
Ashkenazi said that besides the massive success in terms of the launch of a combined service offering and all of the elements associated with now being the biggest listed iGaming business in the world to date, the Stars Group was now in the very valuable position of being able to expand its International influence and extend its global footprint in a forward moving direction.
The group has identified specific benefits that are expected to flow from the new deal, including:
- Increased revenue income diversity: this originates from the fact that the group’s balance sheet is now extended across many avenues, including Poker, casino games, and a superb sports book offering. The geographic reach of a combined product of this nature cannot be easily over-estimated and is of immense value in terms of global reach;
- Increased presence in local regulated markets; and
- Product enhancement thanks to the integration of an already established and fast growing sportsbook.