ZEAL Network has agreed to acquire the remaining 96.5% stake in SevenCanyon Limited, giving the German online lottery operator an immediate presence in the UK digital prize draw market.
ZEAL already owned a 3.5% shareholding in SevenCanyon. The acquisition includes the company’s UK brands 7days Performance, Redline Competitions and UK Carp Competitions, which offer digital prize draws featuring non-cash prizes such as houses, cars and other consumer goods.
For the financial year ending March 2026, SevenCanyon reported EBITDA of more than £10m.
The purchase price for the remaining shares is approximately £33.8m in cash, subject to post-completion adjustments, alongside a potential earn-out of up to £4.8m payable over six months following completion. The transaction is being financed through a €40m seven-year term loan arranged by Deutsche Bank.
ZEAL said it expects the acquisition to contribute to revenue and EBITDA following consolidation and will review its revenue guidance once the IFRS treatment of SevenCanyon’s revenue streams has been finalised.
The company maintained its 2026 EBITDA guidance of €70m-€75m, assuming a normal jackpot environment in Germany, while noting that the forecast includes anticipated one-off transaction costs in the mid-single-digit millions of euros.
For the first full financial year after completion, ZEAL expects the acquisition to make a positive contribution to EBITDA in the high single-digit millions of euros.
“SevenCanyon is one of the most successful prize draw operators in the UK – we have known them for years. With the acquisition, we hit the ground running in a highly attractive and growing market. We also accelerate the implementation of our strategy to selectively diversify our business model through new products and new markets”, says Dr. Stefan Tweraser, CEO of ZEAL Network SE.
“SevenCanyon is a highly profitable company with a proven business model. The purchase price will mainly be financed through a new loan agreement. This preserves our financial flexibility to continue our growth-oriented and shareholder-friendly capital allocation in the future”, says Andrea Behrendt, CFO of ZEAL Network SE.
