Image Credit: Sky/watchdogwire.com/Adrian Preston
UK telecommunications giant Sky have announced the sale of the controlling stake of Sky Bet to the private equity firm CVC Capital Partners for £800 million.
Under the terms of the deal, Sky will retain a 20 percent stake in Sky Bet, while receiving £600 million in cash now, and £120 million at a later stage.
The odds comparison portal Oddschecker is also part of the Sky/CVC deal.
Sky Bet, which was formed in 2001, has grown to be one of the UK's leading online betting companies. It also formed one of the cornerstones of Sky's online gaming activities, alongside Sky Vegas, Sky Poker and Sky Bingo.
According to Sky, the sale will enable the company to focus more on its pay TV efforts, having purchased Sky Deutschland and Sky Italia last month for £7 billion.
"In the last ten years, we have successfully grown Sky Bet from a start-up to one of the leading online betting and gaming companies in the UK," said Sky chief executive Jeremy Darroch .
"This transaction will allow us to focus further on the substantial growth opportunities in our core international pay TV business while realising significant value for our shareholders".
Rob Lucas of CVC said: “We are delighted to have agreed to acquire a controlling stake in Sky Bet.
"The partnership between CVC and Sky will provide a strong platform to support SkyBet’s ongoing success at this exciting point in its development."
CVC will add SkyBet to their current portfolio, which includes Formula One, Skrill, Virgin Active and Merlin Entertainments Group who are the owners of Legoland, Alton Towers and Thorpe Park.
There was no comment from Sky about whether future sales of Sky Vegas, Sky Poker or Sky Bingo were on the horizon.