CVC moves in on Tipico

Private equity group CVC Capital Partners is at the centre of another major gambling deal, announcing Sunday that it signed a binding agreement to acquire a majority stake in betting firm Tipico, Germany’s largest private sports betting group.

Privately-held Tipico – a sponsor of soccer clubs like FC Bayern or Hamburg’s HSV – was put up for sale by its founders in a recent auction. CVC did not disclose the consideration it agreed in the deal, which is subject to clearing by the relevant cartel authorities and is expected to be completed in the third quarter of 2016.

Our readers will recall that CVC took a majority stake in leading British betting firm Sky Bet in late 2014, and has been involved with similar firms such as William Hill and IG Group.

Sources earlier this month said buyout group Centerbridge had joined up with Deutsche Telekom to bid for Tipico, with one adding the planned offer may value Tipico at about Euro 1 billion, or nine times its expected core earnings (see previous report).

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