ZEAL Network to Acquire SevenCanyon in a $52 Million Deal
ZEAL Network’s Strategic Acquisition of SevenCanyon
ZEAL Network, a leading German online lottery company, is set to purchase the UK-based prize draw operator SevenCanyon. This acquisition is designed to expand ZEAL’s presence into the lucrative UK prize draw market and supports their goals of broadening geographical reach and diversifying product offerings.
Complete Acquisition of SevenCanyon Shares
ZEAL Network has agreed to buy the remaining 96.5% of SevenCanyon Limited shares, adding to its existing 3.5% ownership stake. This move grants ZEAL full control of SevenCanyon’s operations.
SevenCanyon manages several popular UK prize draw platforms, such as 7days Performance, Redline Competitions, and UK Carp Competitions. These platforms focus on lottery-style games where participants compete for non-cash rewards, including homes, vehicles, and lifestyle items.
Expected Financial Impact and Revenue Outlook
SevenCanyon has demonstrated strong financial performance, generating an EBITDA exceeding GBP 10 million (approximately $13.4 million). ZEAL anticipates that SevenCanyon will significantly contribute to its overall business growth. Further financial guidance will be updated following the final accounting review in accordance with IFRS standards.
Despite this pending update, ZEAL maintains its annual EBITDA forecast between EUR 70 and 75 million (roughly $94 to $101 million).
The acquisition’s price for the remaining shares is about GBP 33.8 million ($45.4 million), with an additional earn-out potential of up to GBP 4.8 million ($6.4 million) payable over six months. To fund this deal, ZEAL has secured a EUR 40 million term loan with a seven-year maturity, arranged through Deutsche Bank.
ZEAL Executives Express Optimism About the Deal
ZEAL Network’s CEO, Dr. Stefan Tweraser, praised SevenCanyon as one of the UK’s top prize draw operators and expressed enthusiasm about the acquisition. He highlighted that entering this growing market will accelerate ZEAL’s strategic plans to expand through new products and markets.
“With this acquisition, we are positioned strongly in a dynamic and expanding market. It also fast-tracks our strategy to diversify our business by exploring new products and geographic markets,” said Dr. Tweraser.
Similarly, CFO Andrea Behrendt commended SevenCanyon’s profitable business model and noted that the new loan arrangement will help ZEAL maintain financial flexibility for pursuing additional growth initiatives.
