Allwyn secures majority stake in Novibet parent company

Neha Soni December 31, 2024

SiGMA news

Lottery operator Allwyn International has secured a majority stake of 51 percent in Novibet’s parent company Logflex MT Holding Limited.

As part of the deal, Allwyn will pay an initial cash consideration of €217 million, followed by up to €110 million in potential future earnouts based on Logflex’s performance.

The transaction, as confirmed by Allwyn, will expand its presence in online gaming. It will help the company capitalise on Novibet’s existing betting and gaming brand.

Allwyn will be leveraging Novibet’s proprietary tech stack and over 1,000 staff across hubs in Brazil, Greece and Malta. Novibet currently operates in numerous markets including Brazil, Cyprus, Greece, Ireland, and Mexico, among others.

Allwyn’s tech capabilities to get a boost

The acquisition will help strengthen Allwyn’s tech capabilities and reinforce its ability to operate online betting and further diversify its product. The deal is the latest in Allwyn’s strategic M&A deals. The Czech operator acquired Instant Win Gaming, an iLottery content provider, earlier this year.

The deal is expected to close in the second half of 2025, subject to legal and regulatory approvals. The lottery operator confirmed it will not make any changes to Novibet’s existing team and continue operating it as a separate business.

Robert Chvatal, Allwyn’s chief executive officer, is optimistic about the deal and that it will strengthen his team’s momentum and enhance the overall Allwyn offer.

He said, “The innovation potential of this transaction is substantial as we look to give our customers access to the very best experience in online sports betting and gaming. Novibet has a world-class team and we look forward to capitalising on the international opportunities ahead.”

George Athanasopoulos, Novibet’s chief executive officer, said the deal would help Novibet improve its pipeline and expand its product offering.

He said, “We also want to recognize the passion and dedication of the entire Novibet team, whose unwavering commitment to our long-term vision has been integral to reaching this milestone. With their continued support, we remain committed to delivering exceptional value for both our customers and our shareholders.“

Allwyn’s financials

Earlier this month, Allwyn reported a total revenue of €2,143 million in Q3 2024, marking a year-on-year increase of 7 percent compared to €2,007.3 million for the same quarter last year. This increase was driven by organic growth in Greece, Cyprus, and Austria.

The from gaming activities grew by 7 percent to €2,056.6 million, as compared to previous year. Net revenue surged to €981.8 million by 11 percent, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) climbed to €410.8 million by 12 percent. Excluding contributions from UK and North American operations, adjusted EBITDA soared by 21 percent.