- French entertainment giant acquiring majority stake in Tipico
- Buyer plans to merge Tipico with its Betclic business
- Banijay Gaming revenue, EBITDA expected to double through acquisition
French entertainment conglomerate Banijay Group said today it is acquiring a majority stake in German sports wagering giant Tipico Group from CVC Capital in a deal valuing the target at $5.4 billion.
The buyer is paying cash for Tipico and plans to merge that company with its Betclic unit, creating one of Europe’s biggest iGaming and sports betting companies in the process. Banijay estimates the combination will create the Europe’s fourth-largest sports betting entity.
Banijay Gaming – which would double in revenue, adjusted EBITDA and free cash-flow and regroup three strong brands: Betclic, Tipico and Admiral generated €3.0 billion in revenues, €854 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and €716 million in adjusted free cash flow in 2024, on a pro forma basis. Together, they serve almost 6.5 million unique active players annually, operate more than 1,250 betting shops in Germany and Austria and employ 5,300 employees,” according to a statement issued by the Paris-based company.
The transaction price is a significant coup for CVC because rumors surfaced last year that the private equity firm valued its Tipico interest at $3.75 billion.
Banijay Adding Compelling Geographic Exposure
In what Banijay is calling the largest acquisition in its history, it’s adding some attractive geographic exposures to its gaming portfolio.
Betclic already holds enviable market share in its home country of France, the Eurozone’s second-largest economy, and Portugal. The brand is also well-known to bettors in the Ivory Coast. Tipico is one of the largest sportsbook operators in Europe and the acquisition boosts Banijay’s footprint in markets such as Austria, Germany, and Poland.
The buyer forecast $116.36 million in annual savings over “the medium term” by way of the deal. Banijay will own 65% of Tipico when the transaction closes in the middle of next year with the goal of steadily raising that stake to at least 72%. Betclic and Tipico founders are expected to remain long-term investors in Banijay.
CVC has been the majority owner of Tipico for nine years.
Tipico Already Sold US Operations
US exposure isn’t part of the equation in the Banijay/Tipico deal because the latter sold its US operations to MGM Resorts International’s (NYSE: MGM) LeoVegas Group unit in June 2024 for an undisclosed sum.
That acquisition was more about the buyer adding technology than gaining sports betting clients. As a result of that transaction, Tipico wound down its US sports wagering operations.
Though it will retain a stake in Tipico, CVC is significantly reducing its sports betting exposure by way of the Banijay deal. However, the private equity shop has previously been a fixture in other Europe sports betting mergers and acquisitions rumors.
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