Paddy Power owner Flutter Entertainment has announced a deal to buy Tombola, a UK online bingo operator, for an enterprise value of £402m.
Tombola was the first major UK focused operator to introduce both mandatory staking and deposit limits, building a highly sustainable player base over the last 16 years.
The company has about 400,000 average monthly players and over 700 employees.
In its financial year to the end of April, Tombola generated pro forma revenue of £164m and EBITDA of £38.5m.
Flutter, the world's largest online betting group said the deal would diversify its products, expand its position in an area where historically it has not had a big presence, add a sustainable player base and enhance Flutter's operations in its core UK market.
It will also add further product capabilities and expertise, the Dublin-based group said.
Peter Jackson, Flutter's chief executive, said Tombola is a business he had long admired for its product expertise, highly recreational customer base and focus on sustainable play.
"The brand aligns closely with Flutter's safer gambling strategy, a key area of focus for us," Mr Jackson said.
"I am excited to combine Flutter's digital marketing expertise with Tombola’s operational capabilities within the UK & Ireland division and I look forward to welcoming the Tombola team to Flutter and growing a sustainable business for the future together," he added.
Today's deal is conditional on regulatory clearance and expected to complete in first quarter of 2022.
Tombolo derives 80% of its revenue in the UK and a further 16% from Italy and Spain.
Shares in Flutter Entertainment moved higher in Dublin trade today.
