Intralot completes €2.7bn acquisition of Bally’s International Interactive business
Operator secures €1.53bn in cash and 58% stake in Intralot, as former Gamesys entity is sold for the fourth time
Intralot has completed the acquisition of Bally’s International Interactive business for €2.7bn and combined it with Intralot’s global lottery and gaming operations.
This is the fourth time the business formerly known as Gamesys has been sold, following previous transactions involving Intertain (twice) and the 2021 acquisition by Bally’s for $2.7bn.
On completion of the transaction, Bally’s became the majority shareholder of Intralot, with 58% of the equity, and will continue to play an active role in shaping the strategic direction of the combined entity.
Bally’s CEO, and the new Intralot CEO Robeson Reeves, described the deal as a “milestone transaction for Bally’s”.
“We have unlocked significant liquidity in a key asset while establishing an even stronger platform for digital growth,” he said.
“Our shareholders now have visibility into the value of our interactive division as part of a larger, globally scaled operator. Intralot’s lottery expertise and reach, combined with Bally’s International Interactive’s proven digital capabilities, creates a powerful foundation for expansion over the long term.”
The acquisition, originally announced on 1 July, comprised €1.53bn in cash paid by Intralot to Bally’s and €1.136bn of newly issued shares in new Intralot (873,707,073 shares, at an implied value of €1.30 per share).
The company statement read: “The combined entity is expected to generate approximately €1.1bn in annual revenue with industry-leading EBITDA margins in excess of 39%, driven by operational synergies, cross-market opportunities, and continued data-driven innovation.
“This strategic alignment is expected to unlock significant cross-selling opportunities and drive growth and long-term value creation.”
The combined entity will hope to boost Intralot’s sluggish growth rate of recent years.
Between 2021 and 2024, the Greek company’s compound annual growth rate was just 1.97% as gross gaming revenue inched up from €335m in 2021 to €355.5m at the end of 2024.
Over the same period, adjusted EBITDA grew 13% from €110.4m to €124.7m.
The combination of digital gaming assets and lottery operations is a direct strategic contrast to the breaking up of rival lottery suppliers Scientific Games and IGT in recent years.
Bally’s intends to allocate at least $1bn (€860m) of the cash after-tax proceeds to reducing its secured debt, including outstanding revolver balances.
Combined with the contemplated sale and leaseback of Bally’s’ Twin River Lincoln Casino Resort, which includes the application of $500m to reduce secured debt and credit facilities, Bally’s will substantially reduce debt.
The transaction also allows Bally’s to maintain liquidity, including its recently announced increased $670m revolver, to pursue the company’s strategic growth development initiatives.
Bally’s also plans to allocate a minimum of $200m of cash to fund the development of its Chicago casino, as construction accelerates in conjunction with the $940m commitment under its agreement with Gaming and Leisure Properties.
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