Private equity firm CVC Capital Partners announced on Sunday that it has inked a binding agreement to purchase a majority stake in Tipico, known to be the largest private sports betting and gaming operator in Germany.
The gambling company has recently been put up for sale by its founders. Earlier in April, industry sources reported that Deutsche Telekom and private investment group Centerbridge had joined forces in order to place a bid for the gambling operator. At that time, CVC was, too, among the rumored parties that were said to be likely to express interest in acquiring Tipico. It was also expected to make a higher offer than its fellow bidders. China-based private investor XIO Group and Czech lottery operator Sazka were also among those who were supposedly bidding for the German operator.
The private equity group said in a statement that it could not disclose the purchase price due to confidentiality terms. It pointed out that the deal is subject to authorities’ approval and is likely to be closed in the third quarter of the year.
Industry sources valued the sports betting and gaming operator at the amount of €1.4 billion. They also pointed out that CVC is likely to buy a 60% stake in the company.
The private equity firm’s latest purchase would not be its first foray into the gambling industry. The company has previously worked with major sports betting and gaming operator William Hill and UK-based provider of digital trading and betting platform IG Group.
What is more, late in 2014, CVC announced that it would acquire an 80% stake in online gambling operator Sky Betting & Gaming from previous owner Sky Plc for the amount of £800 million. Following regulatory clearance, the transaction was completed in March 2015.
Established in 2004, Tipico has been the leading provider of sports betting options in Germany. The company boasts strong positions in other European markets as well. It manages a multi-channel online gambling platform as well as a chain of more than 1,000 betting shops. The operator currently sponsors German football clubs FC Bayern Munich and Hamburger Sport-Verein.
