Greek gambling operator and provider of gambling solutions INTRALOT Group announced earlier today that it has signed an agreement for the sale of a majority stake in its Peruvian business to local private equity firm Nexus Group S.A.C.
Under the terms of the deal, Nexus Group would buy an 80% stake in INTRALOT De Peru S.A.C., or the Greek gaming giant’s wholly-owned Peruvian subsidiary. The transaction’s completion is yet to be approved by certain third parties. It is also important to note that the purchase price has not been disclosed.
INTRALOT’s Peru-facing business is among the company’s most profitable South American entities. During the quarter ended March 31, 2016, the Greek gaming and lottery operator and supplier announced that sales in Peru increased significantly and partially offset the decrease in sales from South America. The overall drop in sales in that particular region was mainly attributed to softer performance in Argentina, Brazil, and Jamaica.
The news about INTRALOT selling a majority stake in INTRALOT De Peru comes shortly after the company announced that it would merge its Italian operations with Gamenet’s. Under the terms of the deal signed between the two operators, INTRALOT would hold a 20% stake in the combined entity.
It has been reported that the deal is entering its final stages. Once completed, the joint venture between INTRALOT and Gamenet would operate around 800 point-of-sale facilities, over 8,000 video lottery terminals, and more than 50,000 AWP machines across Italy. In addition to this, the combined entity would own directly more than 60 gaming halls around the country.
INTRALOT reported last week its financial results for the first quarter of the year. Revenue was down 3.6% year-on-year as compared to the figure posted for the same period a year ago and amounted to €335.2 million. Net of negative FX effects and other related factors, revenue stood at €377.7 million, up 8.6% year-on-year. The company generated EBITDA of €47.3 million during the reviewed three months, up 5.6% year-on-year. During the first quarter of the year, the gaming company handled €6.9 billion in wagers placed in all regions it has presence.
