Blackstone to take 24% of Lottomatica-CIRSA gaming group in all-share merger

Blackstone Inc. (NYSE: BX) is set to become a major shareholder in an enlarged European gaming group after Italy's Lottomatica agreed to acquire Spain's CIRSA, which Blackstone controls, in an all-share merger announced on 2 September 2026. Bloomberg valued the combination at about €2.8 billion (roughly $3.2 billion).

Blackstone, which held roughly 75% of CIRSA ahead of the transaction, will roll its stake into the combined company rather than cash out. On completion it is expected to own about 24% of the merged group and to receive two seats on a 13-member board.

Under the agreed terms, CIRSA shareholders will receive 0.668 new Lottomatica shares for each CIRSA share, implying a value of €16.55 per share and a premium of about 21% over CIRSA's Tuesday close. Existing Lottomatica shareholders would own 67.5% of the combined company, with CIRSA shareholders holding the remaining 32.5%.

The enlarged group would report pro-forma adjusted EBITDA of around €2 billion (about $2.3 billion) on a last-twelve-months basis as at the first half of 2026. The companies expect around €115 million in annual pre-tax cash synergies by the third full year after completion and have flagged up to €4 billion in shareholder returns over the three years following synergy realisation.

Before completion, CIRSA plans to distribute an extraordinary dividend of €262 million, or €1.56 per share, and the combined board has flagged a further €744 million capital distribution afterwards. Investors gave a mixed initial verdict: Lottomatica shares fell about 9.6% by 1030 GMT on announcement day, while CIRSA rose roughly 17%. The transaction is expected to complete in the second quarter of next year.