Sky, which held 20 per cent of the company, will receive in the region of £145 million for its remaining stake. But the biggest winner is the private equity firm CVC, which bought a majority stake in Skybet from Sky in 2015 for £800m and now looks set to cash on a £2 billion profit.
It had been widely thought that Skybet might stage an IPO.
Jeremy Darroch, Group Chief Executive Officer, Sky, said Sky Bet had created £1 billion in value for Sky shareholders, “This agreement is an important milestone in SBG’s growth story and a testament to what we and the whole SBG team have achieved. We look forward to the next chapter and continuing our long-term partnership with SBG as part of The Stars Group.”
“The acquisition of Sky Betting & Gaming is a landmark moment in The Stars Group’s history,” added Rafi Ashkenazi, the Company’s Chief Executive Officer. “SBG operates one of the world’s fastest growing sportsbooks and is one of the United Kingdom’s leading gaming providers. SBG’s premier sports betting product is the ideal complement to our industry-leading poker platform. The ability to offer two low-cost acquisition channels of this magnitude provides The Stars Group with great growth potential and will significantly increase our ability to create winning moments for our customers.”