The all-share merger between Lottomatica and CIRSA stands to benefit both operators, according to Spanish market expert Eduardo Morales-Hermo.
At the start of September, Lottomatica and CIRSA agreed to a deal that will see the Italian giant take ownership of the Spain- and Latam-focused omnichannel operator.
Bosses said the combination would create the “second largest listed gaming and sports betting operator globally” with a combined adjusted EBITDA of around €2bn.
On the day of the announcement Lottomatica shares fell 10% to €22.38, their lowest level since March, while CIRSA jumped 15.1% to €15.70, the highest level since late-September 2025.
Analysts at Jefferies noted Lottomatica shareholders may need convincing about the benefits of the deal, particularly given CIRSA’s land-based and Latin American exposure.
But speaking to EGR, Morales-Hermo insisted both operators will reap the benefits of joining forces.
“In retail, the merger combines different markets, allowing Lottomatica access to Latam and Central America, adding a Spanish footprint and bolting on CIRSA’s Italy business to its multiple brands in the market,” the Ficom Leisure adviser said.
“Lottomatica will be hoping to tap into the CIRSA growth engine that are mainly driven by Spain and Italy, totalling ~56.7% of CIRSA’s group EBITDA, and less towards the Latam markets.
“This means the Latam factor is not the main one for the transaction to take place and points towards more granted synergies between the companies in Italy and Spain.
“This merger will bring potential benefits for the omnichannel strategy where CIRSA has a strong land-based footprint, mostly in Spain.
“The group’s overall outlook will be on increasing its position in solid and well run markets, such as Spain and Italy.”
Sticking with Latam, Morales noted the region remains an “unknown” for some operators but that it represents a “relatively small” risk to the combined entity.
He explained: “Latam still is an unknown for many operators, mainly due to the uncertainty of political decisions and unsecured legal environment, but the merger has its stronghold in serious and stable markets such as Italy and Spain and therefore the exposure to Latam is relatively small to represent a high risk overall.
“The combination of this merger brings Lottomatica’s proven online and retail omnichannel experience in the Italian market to the table.
“CIRSA can benefit from this in their Latam markets where they have the knowledge and significant presence.
“The deal seams quite timely and most probably both companies will help each other mutually to enhance the performance with their know-how and expertise in retail and online.”
CIRSA, which owns several brands including Apuesta Total, CasinoPortugal, Amazing Bet and Sportium, went pubic last year at an IPO price of €15 per share.
Lottomatica has been active in M&A over the last few years. In November 2023, it acquired SKS365 for over €600m and has since added several companies to its portfolio including Dea Bendata, bingo hall Galletto Fortunato and independent software company Bakoo in 2024.
The combined entity will be known as Lottomatica, with the deal expected to close in Q2 2027.
Post-completion, it will be listed on the Milan Stock Exchange and admitted to trading on the Spanish Stock Exchanges.
CIRSA’s largest shareholder Blackstone is set to become the principal shareholder with around 24% in share capital.
Lottomatica shareholders are expected to own 67.5% of the share capital, with CIRSA holding the remainder.
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Eduardo Morales-Hermo tells EGR the “timely” all-share deal will “enhance the performance” of retail and online operations across the combined group
The post Lottomatica and CIRSA merger benefits both parties, says Spanish market expert first appeared on EGR Intel.