Italian gambling group Lottomatica has agreed to acquire Spain’s Cirsa in a €2.8 billion all-share transaction, creating what the companies say will be the world’s second-largest publicly listed betting and gaming operator.
The combined group will operate under the Lottomatica name and maintain its headquarters in Rome, with an important corporate presence in Barcelona. The transaction is expected to be completed during the second quarter of 2027, subject to shareholder and regulatory approvals.
Under the proposed terms, Cirsa investors will receive 0.668 newly issued Lottomatica shares for each share they own. The offer represents a premium of approximately 21% compared with Cirsa’s value before the agreement was announced.
Blackstone, the American investment group and Cirsa’s largest shareholder, is expected to hold about 24% of the merged company following completion of the deal. Before the transaction closes, Cirsa also plans to distribute a special dividend of approximately €262 million.
The merger will bring together two companies with strong positions in complementary European markets. Lottomatica is a major operator in Italy’s lottery, sports-betting, online gaming and amusement-machine sectors, while Cirsa has an extensive presence in Spain and Latin America.
By combining their operations, the companies intend to establish a larger and more geographically diversified business capable of competing with leading international betting groups. The merged company is expected to generate approximately €2 billion in adjusted annual earnings before interest, taxes, depreciation and amortisation.
Management forecasts that the integration could produce around €115 million in annual pre-tax savings within three years. These savings are expected to come from shared technology, purchasing, corporate functions and other operating efficiencies.
The enlarged group also plans to return as much as €4 billion to shareholders through dividends and share repurchases over the coming years, although these distributions will depend on earnings, debt levels and broader market conditions.
Investor reaction to the announcement was mixed. Cirsa shares rose strongly as the proposed exchange terms placed a premium on the Spanish company. Lottomatica shares fell sharply, reflecting concerns about the scale of the transaction, integration risks and the issuance of new shares.
The agreement comes during a period of consolidation across the global betting industry. Operators are pursuing greater scale to manage regulatory expenses, invest in digital platforms and compete for customers across multiple markets.
European gambling companies are also confronting stricter advertising rules, responsible-gaming requirements and increased scrutiny of online betting. A larger combined business could absorb compliance and technology costs more effectively, but it may also attract closer examination from regulators.
The companies will need approval from the relevant competition and gambling authorities before completing the merger. Regulators are expected to assess its effect on consumers and market concentration, particularly in Italy and Spain.
If approved, the transaction will create one of Europe’s most influential gambling groups and significantly reshape the competitive landscape of the international betting industry. Its eventual success will depend on how effectively the companies integrate their operations while managing regulatory, financial and responsible-gaming obligations. Reuters
