A new market leader for continental Europe worth 9.4 billion euros is emerging in the sports betting sector. The French entertainment group Banijay, whose shares are listed in Amsterdam, is acquiring a 72% majority stake in the German sports betting provider Tipico, which operates from Malta for regulatory reasons. The companies announced plans to merge Banijay's digital subsidiary Betclic with Tipico, which is roughly the same size and also operates local betting shops, to create the fourth-largest European sports betting provider. Banijay's share price rose by 8% during trading on Tuesday. The largest shareholders are the family of CEO and founder Stephane Courbit, billionaire Bernard Arnault and the Fiat Agnelli clan.

The enterprise values of Betclic and Tipico used as the basis for the deal amount to 4.8 billion euros and 4.6 billion euros, respectively. This makes it the fifth-largest M&A deal in Germany in 2025.

The transaction will double the revenue of the Banijay Group's gaming division, Banijay Gaming. On a pro forma basis, the combined company would have generated revenue of 3 billion euros, adjusted operating profit (EBITDA) of 854 million euros and adjusted free cash flow of 716 million euros in 2024. With 5,300 employees, it serves around 6.5 million active customers annually at more than 1,250 locations in Germany and Austria.

Banijay has signed a binding agreement with CVC and the founders of Tipico to combine Betclic and Tipico. The price for the purchase of the majority of Tipico shares from CVC will be paid in cash, while all owners of Betclic and Tipico, including their founders, will remain shareholders in the combined company.

The combined company will be the leader in the six fully regulated markets of Germany, France, Portugal, Austria, Poland and the Ivory Coast. Revenue growth and platform efficiencies are expected to generate synergies of around 100 million euros per year in the medium term. Upon completion of the transaction, the Banijay Group will become the majority shareholder of Tipico with a 65% stake and aims to increase its stake to at least 72% through agreed call options on the remaining shares held by CVC and Tipico's management. The founders of Betclic and Tipico will retain their long-term stake in Banijay Gaming.

Effective 1 January 2026, Nicolas Béraud, currently CEO of Betclic, will become Chairman of the Board of Directors of Banijay Gaming, while Lov Group Invest will retain the role of President. Julien Brun, currently COO of Betclic, will succeed Nicolas Béraud as CEO of the company. Upon completion of the transaction, Joachim Baca, former CEO of Tipico, will become Vice Chairman of the Board of Directors of Banijay Gaming. Axel Hefer will remain CEO of Tipico.

The transaction will be financed by a committed financing package of approximately 3 billion euros. This package also includes the refinancing of Tipico's existing debt and will be provided by Betclic's financing partners. Upon completion of the transaction, the Banijay Group's debt ratio is expected to be 3.5 times its operating profit. Within three years, this figure is expected to fall to less than two and a half times due to the strong cash flow from the combined business. The expected cash flow will support both debt reduction and the planned increase in Banijay Gaming's stake in Tipico to at least 72%.

According to Axel Hefer, CEO of Tipico, this is exactly what the company has been working towards: „Starting with a clear focus on Europe through the sale of our US business, then expansion in Austria last year and now the merger to form a leading European platform.“ According to Daniel Pindur, Managing Partner at CVC Capital Partners and Co-Head of CVC DACH (Germany, Austria and Switzerland), they had „worked closely with the founders and management to develop the company into the leading sports betting provider in the German-speaking region.“

Banijay was advised by investment boutique D'Angelin & Co. and law firms Darrois and Hengeler. CVC was advised by Latham.