Flutter makes its bingo play with £402m buyout of Tombola
Flutter Entertainment has secured a definitive agreement to acquire Tombola Limited – the UK’s leading online bingo and soft games operator for £402 million.
The deal will see Flutter diversify its games portfolio and expand its market share within the UK, in which Tombola generates 80% of its turnover.
“In its financial year to end April 2021 Tombola generated pro forma revenue of £164m and EBITDA of £38.5m. Under the terms of the transaction, Flutter will pay £402m in cash upon completion for 100% of the business.” – read Flutter’s deal statement.
Founded by industry pioneer Phil Cronin in 2005, Tombola champions sustainable play to safeguard its +400,000 monthly player community – securing the recognition of being UK bingo’s best value operator.
Of distinction, the proprietary built bingo room was the first major UK brand to introduce both mandatory staking and deposit limits – a strategic dynamic highlighted by Flutter.
Sunderland-based Tombola has garnered further recognition as one of the best workplaces and employers of the Northeast of England, praised for its culture and the talent development of its 700 workforce.
Flutter underscored the strategic importance of Tombola, securing new assets to its portfolio that will help the FTSE group expand its position in “product vertical in which it has historically under-indexed”.
Peter Jackson, Flutter Chief Executive, commented: “As the world’s leading online gambling operator, Flutter is delighted to add Tombola, the UK’s premier bingo brand to the Group. Tombola is a business we have 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. I am excited to combine Flutter’s digital marketing expertise with Tombola’s operational capabilities within the UK & Ireland division. As the time comes for Phil to hand over the reins, I would like to thank him for building the success story that the business is today, and I look forward to welcoming the Tombola team to Flutter and growing a sustainable business for the future together.”
The acquisition of Tombola is expected to be completed by Q1 2022 trading, dependent on merger control clearances by the UK Competition and Markets Authority (CMA).