ZEAL Network SE has agreed to accumulate the remaining shares in UK digital prize draw operator SevenCanyon Limited, marking the German online lottery firm’s entry into one in all Europe’s largest markets for digital prize draw merchandise.
The transaction will see ZEAL take management of 96.5% of SevenCanyon, with the corporate already holding a 3.5% stake. The acquisition offers ZEAL entry to SevenCanyon’s established prize draw platforms, together with 7days Performance, Redline Competitions and UK Carp Competitions.
ZEAL stated the transfer helps its technique of increasing via new merchandise and extra markets. The firm described SevenCanyon as a longtime and worthwhile operator, with the acquisition anticipated to contribute positively to ZEAL’s income and EBITDA after consolidation.
“SevenCanyon is one of the most successful prize draw operators in the UK – we have known them for years. With the acquisition, we hit the ground running in a highly attractive and growing market. We also accelerate the implementation of our strategy to selectively diversify our business model through new products and new markets”, says Dr. Stefan Tweraser, CEO of ZEAL Network SE.
SevenCanyon operates digital prize competitions providing non-cash prizes reminiscent of properties, autos and life-style merchandise. During its most up-to-date monetary yr overlaying April 2025 to March 2026, the corporate generated working revenue of greater than GBP 10 million.
According to beforehand reported figures, SevenCanyon recorded income of £98.34 million and working revenue of £10.23 million through the 12-month interval ending March 31, 2025.
ZEAL stated the acquisition supplies a right away presence within the UK prize draw sector and creates alternatives to use its expertise in areas together with buyer acquisition, information analytics, retention methods and platform administration.
The firm additionally expects the UK market to proceed transferring towards extra formal regulatory requirements, which it believes will profit operators with established compliance buildings.
Acquisition financed via new mortgage settlement
The buy settlement consists of an preliminary money consideration of roughly £33.8 million for the remaining shares, topic to post-completion changes. ZEAL can also pay a further earn-out quantity of as much as £4.8 million inside six months after completion.
The acquisition might be supported by a €40 million time period mortgage organized by Deutsche Bank, with a seven-year length.
ZEAL Chief Financial Officer Andrea Behrendt stated the transaction permits the corporate to proceed pursuing progress alternatives whereas sustaining monetary flexibility.
“SevenCanyon is a highly profitable company with a proven business model. The purchase price will mainly be financed through a new loan agreement. This preserves our financial flexibility to continue our growth-oriented and shareholder-friendly capital allocation in the future”, says Andrea Behrendt, CFO of ZEAL Network SE, in the company’s press release.
ZEAL’s administration expects SevenCanyon to make a major contribution to the group’s monetary outcomes following completion of the deal. The firm confirmed its 2026 EBITDA forecast of between €70 million and €75 million, assuming regular jackpot situations in Germany.
The firm stated transaction-related bills within the mid-single-digit tens of millions of euros will have an effect on the forecast, whereas the acquisition is anticipated to have a constructive EBITDA impression within the high-single-digit tens of millions through the first full monetary yr after completion.
UK prize draw sector attracts rising business consideration
The acquisition follows ZEAL’s earlier indication that it was exploring alternatives outdoors its conventional lottery operations. The firm had highlighted prize attracts as an space with potential for enlargement throughout its monetary discussions earlier within the yr.
The UK prize draw market has attracted elevated consideration as a result of the sector operates beneath totally different regulatory situations in contrast with conventional playing merchandise. The business presently follows a voluntary code launched by the Department for Culture, Media and Sport.
Market analysts have estimated that Britain’s prize draw competitors sector generates round £1.3 billion in annual income and serves roughly 7.4 million energetic gamers.
ZEAL stated its expertise working in regulated environments positions it to take part out there as regulatory expectations develop.
Previous ZEAL management additionally recognized prize attracts as a possible space for product improvement, significantly due to their attraction amongst youthful audiences.
The acquisition strengthens ZEAL’s presence past Germany and provides a brand new enterprise section alongside its current on-line lottery actions. The firm stated SevenCanyon’s established operations and profitability present a basis for additional enlargement in the UK market.
The deal additionally follows broader efforts inside the prize draw sector to create business requirements. A commerce organisation referred to as the Prize Competition Council was lately established to help accountable practices, shopper safety measures and long-term market improvement.
Completion of the acquisition stays topic to the finalisation of transaction situations.
