Lottomatica-CIRSA All-Share Merger Draws Swift Positive Market Repricing
Lottomatica and CIRSA merger announcement triggered initial 7.6% Lottomatica share drop followed by 18% recovery to €26.95; CIRSA shares rose 41.35% to €19.28. Deal creates second-largest listed gaming operator with >€4.4bn revenue and €2bn EBITDA, effective Q2 2027. Analysts retain mostly Buy ratings while noting 46% of value already reflected.
SCCG Take — Home investor repricing validates the all-share terms but flags execution risk if projected synergies lag. Operators should track whether sustained ratings support holds through the 2027 close.
The all-share merger between Lottomatica Group and CIRSA Enterprises, announced on 2 September, initially pressured Lottomatica shares before prompting a clear rebound. Lottomatica notified the Borsa Milan of its plan to combine with the Spain-headquartered operator. The transaction values CIRSA at €2.8bn-€3bn and is scheduled to take effect in Q2 2027, positioning the combined group as global gambling’s second-largest listed betting and gaming operator after Flutter Entertainment.
The merged entity is expected to generate income of more than €4.4bn and pro-forma adjusted EBITDA of around €2bn for the 12 months ending 30 June 2026. CIRSA, 75% owned by Blackstone, will hold 32.5% of the new company and pay an extraordinary dividend of €262m (€1.56 per share) to current shareholders.
Lottomatica Shares Reverse Early Decline on Sustained Buy Ratings
Lottomatica stock fell from €24.77 to €22.88, a 7.6% drop, on announcement day. As reported by SBC News, the shares have since climbed to €26.95, marking an 18% recovery from the low, 6.9% gains over the past month, and 21% growth year-to-date in 2026. Ben Shelley of UBS reiterated a Buy rating with a €33 target. James Wheatcroft of Jefferies set €35.50, while Ed Young of Morgan Stanley targeted €30.50; all maintained Buy recommendations.
CIRSA Re-Rating Prompts Early Profit-Taking Warnings
CIRSA shares have advanced 37.7% over the last month and 41.35% since the announcement, closing at €19.28 after hitting €19.84. The move comfortably exceeds the prior all-time high of €16.44 set in September 2025. SBC Noticias reported that analysts César Sánchez-Grande and Álvaro Arístegui now see limited further upside. Renta 4 Banco moved its stance from Overweight to Hold with a €23 target, calculating that 46% of the transaction’s €3.7bn in projected value creation is already priced into CIRSA shares.
Lottomatica Chief Executive Officer Guglielmo Angelozzi stated that leadership at both companies must deliver stable and predictable growth. The swift repricing in both stocks confirms home-market investor confidence in the combination, yet the speed of CIRSA’s advance leaves analysts divided on near-term entry points.
Reporting: SBC News
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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