Zeal Network SE has acquired a 96.5% stake in SevenCanyon Limited, a digital prize draw operator based in the United Kingdom. The German lottery brokerage finalized the transaction to establish a significant presence in the European prize draw market.
The purchase price for the remaining shares totals approximately £33.8m, subject to post-completion adjustments. An additional earn-out of up to £4.8m may be payable within six months. Zeal Network previously held a 3.5% interest in SevenCanyon before this transaction.
Financing for the acquisition was secured through a €40m seven-year term loan arranged by Deutsche Bank.
Strategic Expansion and Market Position
SevenCanyon operates several digital platforms, including 7days Performance, Redline Competitions, and UK Carp Competitions. Zeal Network views the UK as Europe’s largest market for digital prize draw products. CEO Dr Stefan Tweraser stated that the acquisition allows the company to enter a growing market immediately.
CFO Andrea Behrendt noted that the business is highly profitable and the loan structure preserves capital allocation flexibility.
Financial Outlook and Regulatory Environment
For 2025, Zeal Network reported revenue exceeding its forecast range of €205m to €215m by 2%, with EBITDA reaching €68.8m. The company reaffirmed its 2026 EBITDA guidance of €70m to €75m, assuming a standard jackpot environment in Germany.
The UK prize draw sector faces increased scrutiny regarding competition with traditional lottery operators. The government has currently opted for a voluntary code of conduct rather than immediate regulation. A new trade body, the Prize Competition Council, launched recently to promote responsible standards.
Industry observers anticipate that formal regulatory frameworks may eventually lead to further sector consolidation.