Equity and investment firm CVC Capital Partners has completed its acquisition of an 80% stake in Sky Bet, the online betting arm of UK pay-television broadcaster BSkyB.
The deal, which was first announced in December 2014, values Sky Bet at £800 million (€1.1 billion/$1.2 billion).
Under the agreement, Sky received £600 million in cash and a vendor loan note, and will be entitled to further payments depending on CVC achieving certain minimum return criteria on its Sky investment.
“The sale crystallizes value for Sky that has been created in Sky Bet, and enables the enlarged Sky to focus on the significant opportunity for growth in pay-TV across the five markets in which it now operates.” Sky said.
Following the announcement, Sky Betting and Gaming CEO Richard Flint told eGaming Review that after the completion of Sky Bet’s sale to CVC Partners, the operator is now in a strong position to close the gap at the top of the UK online gambling market.
“We are one of the fastest growing firms in the UK and this deal will help us further accelerate this growth whilst maintaining our unique advantages from our relationship with Sky,” Flint said. “I expect evolution rather than revolution, but part of that evolution will be even greater pace, energy and excitement in the team.”
Flint also said that Sky will continue on its path to focus on mobile, great technology and close relationship with Sky Sports.
Sky Poker TV will undergo changes such as terminating its 24/7 channel (channel 861 on Sky) and online live streaming, focusing on producing more pre-recorded content such as the UK Poker Championships, educational content, and special features.
Sky will retains a 20% equity stake in the business and ongoing representation on the Sky Bet board. Sky Bet, Sky Vegas, Sky Casino and Sky Poker will continue to use the Sky brand name.