German lottery brokerage Zeal Network SE has acquired a 96.5% stake in UK-based SevenCanyon Limited, marking its official entry into the British prize draw sector. The acquisition was announced on Thursday and includes established digital platforms such as 7days Performance, Redline Competitions, and UK Carp Competitions.
Deal Structure and Financing
Zeal previously held a 3.5% equity interest in SevenCanyon before this transaction. The purchase price for the remaining shares is approximately £33.8 million, subject to post-completion adjustments, with an additional earn-out payment of up to £4.8 million payable within six months. The company secured funding for the deal through a €40 million, seven-year term loan arranged by Deutsche Bank.
Strategic Expansion and Financial Outlook
Zeal executives described the move as a step toward geographic and product diversification. CEO Dr. Stefan Tweraser noted that SevenCanyon is a successful operator and the acquisition allows the company to start immediately in a growing market.
CFO Andrea Behrendt emphasized that the business is highly profitable and the loan financing preserves Zeal’s flexibility for future capital allocation.
The acquisition is expected to be EBITDA-accretive, contributing to the group’s revenue post-consolidation. Zeal reaffirmed its 2026 EBITDA guidance of €70 million to €75 million, assuming a normal jackpot environment in Germany. For the 2025 fiscal year, the company reported revenue between €205 million and €215 million, exceeding September forecasts by 2%, while EBITDA reached €68.8 million.
Interest in the prize draw vertical has been a focus for Zeal since the FY25 earnings call in March, when Tweraser highlighted the company’s investment capacity. Former CEO Helmut Becker previously noted that prize draws appeal to younger demographics and offer opportunities for product innovation. The UK sector is viewed as attractive because it operates outside strict lottery regulations.