Sky-high bet

4 December 2014 By Dominic Elliott

The buyout firm is paying $940 mln for 80 pct of the online gaming arm of satellite broadcaster Sky. The 15 times trailing EBITDA price tag reflects the rapid growth of internet betting. But Sky’s minority stake and board representation could complicate CVC’s investment.

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Buyout firm CVC Capital Partners said on Dec. 4 it had agreed to pay 600 million pounds ($940 million) for an 80 percent stake in Sky Bet, the online gaming arm of satellite group Sky.

The deal represents a price of 15 times trailing EBITDA on the implied 800 million pound valuation for the unit. Sky will retain a 20 percent stake and board representation.

Sky will also receive a further payment up to the value of 120 million pounds contingent on performance.

CVC said the deal was expected to complete in the first quarter of 2015.

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