CVC acquires controlling stake in Sky Bet for £800m

Sky has agreed to sell a controlling stake in its online betting arm to CVC Capital Partners, in a deal which values Sky Bet at £800m.

Under the agreement, Sky will receive £600m on completion of the deal, and further deferred and contingent payments of up to £120m, while Sky will retain an equity stake of 20% in Sky Bet, with which it has entered a long-term brand licence agreement.

The total value of £800m is about 15 times bigger than the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the year ended 30 June.

“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,” said Sky chief executive Jeremy Darroch.

“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.”

Sky added the deal is subject to regulatory clearances in the UK and Ireland and is expected to be completed in the first three months of 2015.

Sky shares were 0.81% up to 934.50p at 08:35 on Thursday.