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Intralot has successfully secured a €660 million financing package to facilitate its acquisition of Bally’s International Interactive division. This funding arrangement includes a €460 million senior secured term loan with a six-year maturity from institutional lenders.
Additionally, a Greek bank consortium has committed to providing €200 million in a binding four-year amortizing term loan.
The entirety of these funds will support Intralot’s planned purchase of Bally’s division, which was agreed upon in July for €2.70 billion as a cash-and-stock deal. The closing of this financing is contingent on meeting specific conditions related to both the acquisition and refinancing processes.
Furthermore, Intralot has reached an agreement with bondholders allowing its €130 million retail bond to remain outstanding after the acquisition is finalized.
What happens next for both companies?
Following the acquisition, Intralot projects becoming a leading player in the iGaming and lottery market, projecting combined revenues of €1.1 billion. This reverse merger will position Bally’s as the majority shareholder of Intralot.
For Bally’s, the deal is expected to strengthen its cash reserves, facilitating its plans for land-based casino expansions in the US and Australia.
The completion of the acquisition is anticipated before the end of 2025. If all goes as planned, Robeson Reeves, the current chief executive of Bally’s, will take over as CEO of Intralot, succeeding Nikolaos Nikolakopoulos. Nikolakopoulos will shift his focus to leading the lottery division. Meanwhile, both Intralot Chairman Sokratis Kokkalis and Bally’s Chairman Soohyung Kim will continue to serve on the board.
“This transaction marks a transformative moment for Bally’s as we unite our outstanding gaming and data technology with Intralot’s exceptional expertise in lottery,” Reeves said in July. “Together, we are creating a unique proposition that will pave the way for a new era of innovation and growth across the entire gaming spectrum.”
Intralot releases H1 financial results
Intralot also released its financial results for the first half of the year, showcasing a mixed performance amid its recent acquisition activities. While revenue saw a slight increase, the company reported a decline in gross profit and recorded a small net loss.
Lottery remained the dominant revenue driver, contributing 53% to the overall figures. Sports betting followed with 22%, while video lottery terminals and IT products and services accounted for 12.8% and 12.2%, respectively. Although B2C revenue grew year-on-year, the results for the B2B and B2G sectors were less consistent.
Intralot also held its capital markets day after the H1 results were released. Nikolakopoulos of Intralot and Reeves from Bally’s discussed how both businesses will operate.
A key focus emerged on the UK market, particularly on customer retention strategies for Bally’s. Reeves emphasized that taking advantage of these strengths would be crucial for Intralot’s expansion in B2C iGaming, sports betting, and iLottery sectors.
“We’re very UK dominant. [But] this combination [with Intralot] allows us to spread out our revenue. It’s good and bad being UK dominant, you know? You might say you’re too concentrated. [But] regulation means that you end up with a stable, reliable business,” he told analysts and investors.
Source: iGB
