Pan-European broadcaster Sky has agreed to sell a controlling interest in its gaming business Sky Bet so that it can concentrate on its pay-television operations.
Private equity and investment firm CVC Capital Partners has agreed to buy the controlling interest in Sky Bet in a deal that values the company at £800m (€1.019bn/$1.255bn), which represents a multiple of approximately 15x EBITDA for the 12 months ending June 30, 2014.
Under the terms of the transaction, Sky will receive cash of £600m on completion and further deferred and contingent consideration up to the value of £120m.
Sky, which was advised by investment banking group Goldman Sachs in the transaction, will retain an equity stake of approximately 20 per cent in Sky Bet and ongoing board representation.
Sky said the deal enables it “to focus on the significant opportunity for growth in pay TV across the five markets in which it now operates”.
BSkyB last month said it would be renamed as Sky after the UK pay-television broadcaster confirmed that it had completed acquisitions of Sky Italia in Italy and a majority stake in Sky Deutschland in Germany and Austria.
The deal brings together leading sports broadcasters in three of Europe’s four largest pay-television markets.
Sky has acquired 100 per cent and 57 per cent of 21st Century Fox-owned Sky Italia and Sky Deutschland, respectively. Sky also made an offer to Sky Deutschland’s minority shareholders, with 89.71 per cent having accepted. BSkyB paid £6.88bn to create the pan-European pay-television company.