French entertainment group Banijay has agreed to acquire a controlling stake in sports betting operator Tipico from CVC Capital Partners in a deal valuing the company at €4.6bn ($5.4bn), Reuters reports.

The transaction will merge Tipico with Banijay’s existing gaming platform Betclic to form Banijay Gaming, which will become the largest sports betting company by revenue in continental Europe.

Under the terms of the agreement, Banijay will initially hold 65% of the combined entity, with plans to raise its ownership to 72% through call options. CVC, which first invested in Tipico in 2016 when it was valued at €1.4bn, will retain a minority stake.

The deal, valued at around €3bn for Banijay’s majority interest, will be settled through a mix of cash and shares and includes the repayment of Tipico’s outstanding debt. Banijay expects to close the acquisition by mid-2026, pending regulatory approvals, and projects €100m in annual cost benefits within three years.

Banijay CEO François Riahi said there is “no real overlap” between the group’s existing assets and Tipico’s operations, adding that Banijay plans to sell its stake in German-listed bookmaker Bet-at-home to simplify regulatory clearance.

Tipico, based in Malta, is Germany’s leading sports betting operator. Its integration with Betclic, which already holds a strong presence in France, Portugal, and Poland, will create a European powerhouse in online gaming.

For CVC, the sale marks a major exit from one of its longest-held portfolio companies, as buyout firms accelerate asset sales to return capital to investors after a slowdown in global dealmaking.

Banijay, whose portfolio spans television, gaming, and digital entertainment, counts the Arnault family and Vivendi among its key shareholders. Its shares rose 7.6% on the announcement, reflecting investor optimism in the company’s strategic expansion beyond television.

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