As part of the deal, Allwyn will pay an initial €217m (£180m/$225m) in cash to acquire the stake. Then, an additional €110 million will be paid according to Novibet‘s performance.
Still subject to relevant legal and regulatory approvals, the acquisition is expected to be completed in the second half of 2025. It was announced on December 30. Employing more than 1,000 people, Novibet operates in several markets, including Brazil, Cyprus, Greece, Ireland and Mexico.
Allwyn said this acquisition was a continuation of its strategy of making selective acquisitions in relevant products, technologies and content to support growth. It announced the purchase of a 70% stake in Instant Win Gaming in February 2024, which is also in line with this strategy.
In terms of management, Novibet’s founding management team will continue to operate the business after the transaction is completed. So Novibet will be run as a separate business from Allwyn, remaining under its existing brand.
Allwyn CEO talks about the potential for innovation
Commenting on the deal, Allwyn CEO Robert Chvatal said the acquisition will strengthen the group. He added that players in various markets will also benefit from its expanded offering.
“The innovation potential of this transaction is substantial as we seek to give our customers access to the best sports betting and online gaming experience,” said Chvatal.
“Novibet has a world-class team and we look forward to capitalizing on the international opportunities that lie ahead.”
Novibet CEO George Athanasopoulos also approved the deal. He said joining Allwyn marks the start of an “exciting new chapter” for Novibet.
“Allwyn’s dedication to growth opportunities was a key factor in our decision. We look forward to combining their broad resources and expertise with our leading technology and operational experience.”
“This partnership will accelerate our ability to develop proprietary solutions, expand our product offering and extend our success to a much larger international audience at a faster pace.”
Growth in Austria, Cyprus and Greece
The deal follows Allwyn publishing its financial results for the third half of 2024. Revealed last month, the figures showed a 7% increase in revenue following growth in Austria, Cyprus and Greece.
Consolidated revenue for the three months to 30 September reached €2.14 billion, surpassing the £2.01 billion reported in the third quarter of 2023. Thus, gross gaming revenue was also 7% higher year-on-year, reaching €2 .06 billion.
But certain markets in Europe have seen significant growth. Greece and Cyprus led the way with a 17% increase in consolidated revenue, while revenue in Austria increased 7% year over year.
Additionally, Allwyn’s UK-facing National Lottery business is also booming. UK revenue grew 3% to €980.9 million, despite activity levels being broadly flat compared to the previous year.