Allwyn, the operator of the UK national lottery, is to merge with Athens-based gaming company OPAP, to create a global business worth in the region of €16 billion.
The new venture will retain the Allwyn name and although it will keep OPAP’s listing on the Main Market of the Athens Stock Exchange, the firm is expected to pursue an additional listing on either London or New York’s exchange.
The business combination of Allwyn and OPAP will create the second largest listed lottery and gaming operator globally.
Allwyn’s Global Expansion
The announcement has come just a month after Allwyn agreed to pay $1.6 billion for a majority stake in fantasy sports operator PrizePicks, the firm’s first move into the sports and entertainment market in the US.
Allwyn presently holds a 51.78% stake in OPAP, having first invested in the business in 2013.
That was funded by KKGC, the investment firm managed by Czech businessman Karel Komarek, which is the controlling shareholder of Allwyn with a 96% stake.
After the merger, Allwyn will own around 78.5% of the combined business, with OPAP holding the remaining 21.5%.
OPAP has also made the decision to change its brand name to Allwyn from the start of next year.
Creating A Global Giant
Allwyn has brokered several high-profile collaborations in sport as it has looked to increase global brand awareness, including a partnership with McLaren, the newly crowned winners of the Formula 1 Constructors’ Championship.
It claims that the newly combined company will be the second largest listed lottery and gaming operator globally, as well as the largest listed lottery company.
Komarek, the founder and chair of Allwyn and KKCG Group, heralded the global play.
“Today’s announcement redefines the sector, signalling the creation of the second largest listed gaming entertainment company globally,” he said.
“For investors, this is a unique opportunity to be part of a dynamic company that is shaping the future of entertainment.
“The combined strength and scale of these multi-billion dollar businesses, massive customer base and Allwyn’s continued investment in technology and content, will accelerate innovation and fuel significant international growth.
“We’re on a mission to build the world’s leading global gaming entertainment company, and today’s transaction takes us one step closer to that goal.”
Executive Reaction To The Business Merger
Robert Chvatal, Allwyn CEO: “This transaction marks a further milestone in Allwyn’s successful journey.
“Since being founded 13 years ago, we have grown substantially in terms of business performance, scale and innovation.
“With this combination, we will be able to grow further, faster as we deploy Group-wide know-how, a unified brand and sponsorship strategy, and in-house technology and content.”
Jan Karas, OPAP CEO: “This exciting combination creates a leading gaming company with strong Greek heritage, as well as a continued presence and listing in Greece.
“I’m excited about the opportunity for OPAP to deepen our strong existing relationship with Allwyn, driving innovation and additional growth opportunities.”
Pavel Mucha, OPAP CFO: “The tremendous financial characteristics of the combined business will continue to deliver substantial, consistent dividends to our shareholders, while also allowing investment in the business and additional value-accretive acquisitions to further accelerate growth.”
