The Stars Group has completed its US$4.7bn deal to acquire Sky Betting and Gaming, the company has announced.

The Stars Group

The news arrives on the back of The Stars Group raising $622m in capital through the execution of a public share offering.

"This acquisition represents a pivotal moment in The Stars Group's evolution," said Rafi Ashkenazi, The Stars Group's CEO. "SBG's mobile-focused sportsbook pairs well with our industry-leading poker offering to create two premier customer acquisition channels. We believe this combination along with our combined online casino offerings positions The Stars Group for continued growth in the evolving online gaming industry."

The Stars Group believes the acquisition provides “multiple expected operational and financial benefits”, including diversifying revenue diversity across poker, casino and sportsbook with a broad geographic reach; increasing the presence in locally regulated or taxed markets to approximately 75 per cent of combined revenues; developing sports betting as a second customer acquisition channel, complementing core offerings and creating an opportunity to cross-sell players across multiple verticals; and enhancing The Stars Group's products and technology through the addition of SBG's sportsbook and casino offerings and portfolio of mobile apps.

"This transaction creates the world's largest publicly listed online gaming company and unites two iconic brand portfolios with strong technology platforms and teams. This significant scale also positions The Stars Group to both secure and expand upon its global footprint," Ashkenazi added.

Consideration for the purchase of SBG was comprised of a combination of cash and around 37.9m newly issued common shares of The Stars Group. The cash consideration of the acquisition was financed through cash on the balance sheet, proceeds from The Stars Group's recent equity offering and newly issued debt consisting of: $100m from its revolving credit facility, which was increased to $700m, priced at LIBOR plus 3.25 per cent and maturing in five years; $4.567bn equivalent in new first lien term loans, comprising a tranche of $3.575bn priced at LIBOR plus 3.5 per cent and a tranche of €850m priced at Euribor plus 3.75 per cent, and each with a zero per cent floor and maturing in seven years; and $1bn in seven per cent unsecured senior notes due in July, 2026.