Tipico suitors must prove growth plan

Tipico suitors must prove growth plan

Wednesday, April 13, 2016 Totally Gaming
The German operator will only accept a bid that offers an ambitious strategy

Bidders for Tipico have been told they must offer a powerful vision for the future of the German sports betting company as well as a good price.

TotallyGaming.com understands that the operator, a 'premium partner' of German Bundesliga football club Bayern Munich, is already in advanced talks with a number of potential suitors, ranging from strategic investors to financial sponsors and other gambling companies, and bids could be submitted as early as the end of this month. The interested parties include a combination of buyout group Centerbridge and the venture capital wing of Deutsche Telekom, Chinese investor XIO Group, Sky Bet owner CVC Capital Partners and Czech lottery firm Sazka. 

However, it is expected that other suitors will also become involved, and a source close to the process told TotallyGaming.com that Tipico’s owners will make their decision based upon guaranteeing new investment and “what is best for the company” and are in no rush to conclude a deal.

A Reuters report suggests that the joint bid involving Centerbridge and Deutsche Telekom could value Tipico at €1bn ($1.1bn), which is approximately nine times the operator’s expected core earnings. Last year, the betting firm posted earnings before interest, tax, depreciation and amortisation of approximately €110m.

TotallyGaming.com says: “After the huge buyouts seen during 2014 and 2015, it will be interesting to see how this auction progresses. Tipico has attracted some big names from around the world already, each of whom have clearly identified the potential of the German gaming industry.”

Latest
No alternative text provided

GambleAware seeks data to evaluate areas of problem gambling

No alternative text provided

Gambling Commission toughens up on consumer protection

No alternative text provided

Tory peer calls for mandatory industry levy: but it’s nothing new!

No alternative text provided

FOBTs in the news with VAT victory and fresh calls for early £2 stake implementation

Gaming Products & Services Directory

The essential directory for the gaming industry