Sky has agreed to sell a controlling stake in its online betting and gaming business, Sky Bet, to funds advised by CVC Capital Partners (“CVC”) in a deal which values Sky Bet at £800 million.
The transaction is subject to regulatory clearances in the UK and Ireland and is expected to close in the first quarter of 2015. Under the terms of the transaction, Sky will receive cash of £600 million on completion and further deferred and contingent consideration up to the value of £120 million.
Jeremy Darroch, Group Chief Executive of Sky, comments: “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. 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.”
Goldman Sachs International is acting as exclusive financial adviser to Sky on the transaction.