The Stars Group Becomes World’s Largest Online Gaming Operator
It remains to be seen just how far this acquisition can drive The Stars Group forward
Last week saw the completion of The Stars Group Incorporated’s long-mooted acquisition of Sky Betting and Gaming from CVC Capital Partners and Sky. The Canadian online casino operator raised $622 million to help fund the deal, thanks to a successful public share offering. The total price of the transaction, though, was a staggering $4.7 billion. Thanks to the buyout of the company’s British rivals, The Stars Group is now officially the world’s largest publicly-listed online casino operator.
According to a press release from The Stars Group on June 26, in a public offering of common shares a total of 25 million shares were sold at a price of US$38 each. This mass fund-raising enabled the company to get together the last of the wealth needed to complete its takeover of Sky Betting and Gaming and become the number one online casino operator on the planet.
The takeover deal was agreed between The Stars Group and CVC Capital Partners and Sky in April, and for a deal of this magnitude it has been completed quite swiftly. The Toronto-based firm, which owns PokerStars and FullTilt, decided to complete the takeover in an effort to expand its reach into regulated markets such as the United Kingdom.
The company’s CEO, Rafi Ashkenazi, announced that: “This acquisition represents a pivotal moment in The Stars Group’s evolution.” He went on to describe how SBG’s mobile-focused sportsbook paired well with The Stars Group’s main poker offering to create two premier customer acquisition channels.
The Stars Group, which was known as Amaya Inc. until 2017, was founded in 2001 and since then has undergone a dramatic rise to the top of the online gambling industry. Until now, the biggest move in its history was taking over the parent company of PokerStars and Full Tilt Poker, owned by Isai and Mark Sheinberg, for $4.9 billion in 2014. These are two of the best-known poker sites on the planet, and boast prestigious ambassadors such as Daniel Negreanu and Howard Lederer.
Sky Betting and Gaming is responsible for a number of well-established gambling sites including Sky Bet, Sky Casino, Sky Bingo, and Oddschecker. The merging of the two companies will doubtlessly help The Stars Group expand all on fronts, and create interactivity between all of its services.
After this acquisition, there is no limit to the potential expansion prospects for The Stars Group moving forward. This is exciting news for Canadian gamblers, as the Canada-based firm always makes sure that its own clients are well-catered for. The gambling giants will now have access to even more technological innovations, so they can keep all their products ahead of the curve and provide the best gambling experience possible.
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Stars Group Press Release, June 26: http://www.starsgroup.com/press-center/the-stars-group-news/the-stars-group-announces-closing-of-public-offering-of-common-shares