Sky (SKY.L) has announced news its has agreed to sell a controlling stake in online betting venture SkyBet to CVC capital partners in a deal valuing SkyBet at £800M.
Under the terms of the transaction, Sky will receive cash of £600 million on completion and further deferred and contingent consideration up to the value of £120 million. The total value of £800 million represents a multiple of approximately 15x EBITDA for the 12 months ended 30 June 2014. Sky will retain an equity stake of approximately 20 per cent in Sky Bet and ongoing board representation. As part of the transaction Sky has also entered into a long-term brand licence agreement with Sky Bet.
Jeremy Darroch, Group Chief Executive of Sky (SKY.L), said: “In the last ten years, we have successfully grown Sky Bet from a start-up to one of the leading online betting and gaming companies in the UK. This transaction will allow us to focus further on the substantial growth opportunities in our core international pay TV business while realising significant value for our shareholders.”
The transaction is subject to regulatory clearances in the UK and Ireland and is expected to close in the first quarter of 2015.
Sky (SKY.L) has announced news its has agreed to sell a controlling stake in online betting venture SkyBet to CVC capital partners in a deal valuing SkyBet at £800M.
Under the terms of the transaction, Sky will receive cash of £600 million on completion and further deferred and contingent consideration up to the value of £120 million. The total value of £800 million represents a multiple of approximately 15x EBITDA for the 12 months ended 30 June 2014. Sky will retain an equity stake of approximately 20 per cent in Sky Bet and ongoing board representation. As part of the transaction Sky has also entered into a long-term brand licence agreement with Sky Bet.
Jeremy Darroch, Group Chief Executive of Sky (SKY.L), said: “In the last ten years, we have successfully grown Sky Bet from a start-up to one of the leading online betting and gaming companies in the UK. This transaction will allow us to focus further on the substantial growth opportunities in our core international pay TV business while realising significant value for our shareholders.”
The transaction is subject to regulatory clearances in the UK and Ireland and is expected to close in the first quarter of 2015.
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