Flutter set to acquire Tombola for £402m

London-listed betting and gaming operator Flutter Entertainment has announced the acquisition of privately-owned UK bingo operator Tombola for £402m.

The all-cash deal will bring to an end Phil Cronin’s ownership of the 700-employee company he founded in 1999 when it completes in Q1 next year.

Flutter chief executive Peter Jackson commented: “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."

Tombola has grown to become the UK’s most successful bingo-led operator with annual revenue of £164m and EBITDA of £38.5m for the financial year ending April 2021. Eighty per cent of its revenue comes from the UK, with 16 per cent split between Italy and Spain. Its compound annual growth rate over the past five years is 23 per cent.

The operator has built its business on recreational players and was the first major UK operator to introduce mandatory staking and deposit limits. It has maximum net deposit limits of £250 per week and £500 per calendar month. The maximum amount a player can can deposit into his or her account at any one time is £250.

Jackson continued: “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.”

Global investment bank GCA Altium acted as advisor to Tombola.

Shares in Flutter Entertainment plc (LSE:FLTR) were trading 0.60 per cent higher on the news at 11,760.00 pence per share in London earlier Thursday.