After being in business for 12 years, German sports betting company Tipico is up for sale and the bidding has begun. According to Reuters Centerbridge and Deutsche Telekom have partnered to go after the acquisition, which is also being pursued by Sky Bet owners CVC Capital Partners.
Rothschild and JP Morgan are serving as Tipico advisors during the bidding, which is scheduled to come to a close at the end of next week.
Since its launch in 2004, the company has developed a reputation in the German market via its sponsorship of several Bundesliga clubs including Hamburger SV and Werder Bremen. Oliver Kahn was also involved as a brand ambassador and Tipico was previously the title sponsor of the Austrian Bundesliga.
In terms of the acquisition partnership, Deutsche Telekom will hold a minority stake while Centerbridge maintains the majority share.
Deutsche Telekom is well versed in the world of sports betting with the current 64% ownership share of Deutsche Sportwetten (DSW) GmbH, owner of Tipp3, Austria's sport betting group Tipp3.
Tipico owners could stand to receive a €1 billion offer from Deutsche Telekom and Centerbridge.
According to Reuters, “XIO Group, a China-based buyout firm, is also expected to bid, while Czech lottery firm Sazka, which is owned by investors Emma Capital and KKCG, is unlikely to present a high offer, two other sources said.”
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Comments (1)
sharpe
04/28/16, 11:04:46 PM
Obviously this deal could be a huge one for the Sky bet owners who could concurred a brand new market but certainly the competition looks to very strong. Deutsche...
Obviously this deal could be a huge one for the Sky bet owners who could concurred a brand new market but certainly the competition looks to very strong. Deutsche Telekom is probably the favourite for the deal while they are local brand. Would be very interesting race anyway because all of those brands are quite powerful players.
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