Leeds betting firm to be spun-out of Sky to create £800m company
Sky Betting and Gaming is to become an independent company after its parent company Sky sold a majority share to CVC Capital Partners in a deal which values the business at £800m.
The Leeds-based company will continue to be run by the existing leadership team, with Richard Flint assuming the role of chief executive, and the 500-strong workforce will also move over. Following the sale Sky will retain a significant minority share enabling it to participate in the continued success of the business.
Mr Flint believes there are “exciting growth opportunities” for the company, which CVC’s experience can help to maximise.
He said: “Today’s transaction brings in CVC as a new majority investor who will support us in the next phase of our development, and retains the benefits of Sky’s and Sky Sports’ continuing involvement.
“CVC brings a broad international network, has an excellent track record of building businesses, as well as valuable experience in the betting and gaming sector, through previous investments in companies such as William Hill and IG Group.”
“When we moved across from Harrogate to Leeds in 2010 we were confident that this city was the perfect place to develop our business. We’re even more certain that with the wealth of technology talent and knowledge in the Yorkshire area, as well as the historical links to sport, this is the perfect place to start the next chapter in the Sky Betting and Gaming success story.”
Sky will still have 1,200 employees based in or around the Leeds itself, including technologists, customer service advisers, sales teams and engineers.
Sky Betting and Gaming was formed in 2001 and today operates five major online products, Bet, Vegas, Casino, Poker, and Bingo. It has risen to be the fifth biggest player in the UK market, and has delivered an annualised growth in operating profit of over 40% and a fourfold increase in revenues over the last five years.
The transaction is subject to regulatory clearances in the UK and Ireland and is expected to close in the first quarter of 2015.
