Lotto24, the biggest private digital lottery operator in Germany, is set to merge with UK-based lottery company Zeal Network.
The deal was initiated by a takeover approach from Zeal, and in a statement at the weekend, the two operators said that they were aiming to work together to gain further regulatory approvals as well as targeting increased growth. Once the merger has been finalised, it is expected that Lotto24 CEO Petra von Strombeck and Chief Financial Officer (CFO) Magnus von Zitzewitz, will join the executive board at Zeal, while the Zeal CFO will become part of the Lotto24 board.
The merger will produce a lottery company with over five million customers and a wide global reach, worth around €500 million. The deal will enable Zeal to re-acquire its myLotty24 and Tipp24 subsidiaries and reorganize its German-based secondary lottery business as a locally licensed online platform. Speaking about the deal, the CEO of Zeal, Dr Helmut Becker, said that there was a strong strategic rationale behind the merger, which would create value for all stakeholders, and would help both companies to grow significantly:
“This transaction will reunite Zeal with Lotto24 and put us in an extremely strong position to accelerate online growth in the German and international lottery markets.”
The merger was approved by the German Federal Cartel Office earlier this month, but won’t go through until Zeal shareholders vote to support it at an extraordinary general meeting on January 18.
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