Sky Betting was fined for a security issue, and now they are being purchased by the Stars Group. The fine occurred due to an issue with their security protocols not being good enough against hackers. It was not a happy day for the company, but they did admit to the issues and the fact that they were working on fixing them.
The Stars Group will spend $4.7 billion for the acquisition. They made a deal with Sky Betting and Gaming, with an announcement made Saturday morning in Toronto. The Stars Group is listed on the Toronto stock exchange. They stated the deal with CVC Capital Partners and Sky PLC would allow them to purchase the UK SBG online operation. They will use $3.6 billion in cash and $1.1 million in common shares.
The deal is not quite final, as the regulatory committees will need to weight in, however, it seems likely that they will go through with the purchase in the third quarter of 2018. The Stars Group may be acting against GVC’s moves. GVC is also acquiring several locations that have made them a target for concern. They are rapidly making deals, which may have given the lion’s share of the online gambling world. The Stars Group bragged that they will now be the largest publicly listed company for online gaming in the world, despite GVCs recent moves.
A Little About Stars Group
The Canadian company owns PokerStars among other online Stars brands. They have been one of the largest companies offering online poker and gambling for more than five years. If their revenue is any gauge, the company knows what it is doing, with projections like $70 million in revenue from gaining Sky Betting.
Sky Betting and Gaming is also a quickly growing online operator, with 624 million pounds in revenue, and a total of 212 million pounds year on year improvement between 2017 and 2016. The company is attractive for groups like the Stars who can afford an acquisition or two.
CEO Rafi Ashkenazi, The Stars Group CEO, said they made a landmark deal claiming the sports betting product. They are not only the poker platform around the world but now they have a chance to become a major betting company.
Richard Flint, CEO of Sky Betting, was also happy with the deal and is welcoming joining forces with The Stars Group. The Stars Group also bought William Hill Australia and CrownBet.