Operator News
Czech – Apollo Global invests €500m into Sazka Group
By Phil - 10 November 2020
Apollo Global Management is investing €500m (£448.1m/$591.8m) into Sazka Group, with the formation of a new company Sazka Entertainment who will own Sazka Group.
Sazka, who runs lottery businesses in the Czech Republic, Greece, Cyprus, Austria and Italy, as well as owning Casinos Austria and a 40 per cent share in Greek operator OPAP, said it will use the investment to ‘capitalise on acquisition and growth opportunities in Europe and North America, with a focus on lotteries.’
Karel Komárek, founder of KKCG and Chairman of the Board of Sazka Group, said: “Our business is entering a new era and this investment and strategic partnership will support our long-term expansion plans. I am happy that, after a series of discussions with major investment funds from around the world, we came to an agreement to partner with Apollo. I believe the interest in Sazka Group from one of the world’s leading investors in gaming and largest alternative investment managers and globally confirms the value and strategy of Sazka Group, and is an endorsement of the excellent work of the entire Sazka Group management team.
“In partnership with a strong US investor, Sazka Group is well positioned to expand in Europe, the US and other potential regions, continuing to focus on lottery and complementary gaming verticals. I am convinced that the gaming industry is one of the most promising sectors for the future and Sazka Group aspires to be a global player in this sphere. I have absolute confidence that with support from Apollo my team will take the business to the next level.”
James Kim, Apollo Partner and European Co-Head of Hybrid Value, added: “We are very excited to invest in SAZKA Group, one of Europe’s leading private lottery operators. The company has a very successful track record of organic and inorganic growth and we believe this investment, coupled with our sector expertise and relationships, will help the management team achieve their strategic growth plans in Europe and around the globe.”
The transaction implies an equity valuation of €4.2bn for Sazka Entertainment.
Last month, Sazka appointed Sir Keith Mills as Bid Chair of the UK team as it looks to land the fourth National Lottery licence competition.
