April 24, 2016 / 7:53 PM / 2 years ago

CVC takes majority stake in betting firm Tipico

FRANKFURT, April 24 (Reuters) - Funds advised by private equity group CVC Capital Partners on Sunday signed a binding agreement to acquire a majority stake in betting firm Tipico, Germany’s largest private sports betting group, CVC said.

Privately-held Tipico - a sponsor of soccer clubs like FC Bayern or Hamburg’s HSV - was put up for sale by its founders in a recent auction.

A purchase price was not announced, due to confidentiality agreements, CVC said in a statement, adding the deal is subject to clearing by the relevant cartel authorities and is expected to be completed in the third quarter of 2016.

CVC took a majority stake in leading British betting firm Sky Bet in late 2014, and had been involved with similar firms such as William Hill and IG Group, it said.

Sources earlier this month said buyout group Centerbridge had joined up with Deutsche Telekom to bid for Tipico, with one adding the planned offer may value Tipico at about 1 billion euros ($1.1 billion) or nine times its expected core earnings.

They said at the time that CVC was also expected to bid, among others. ($1 = 0.8913 euros) (Reporting by Vera Eckert; Editing by Ruth Pitchford)

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