Buyout group Centerbridge and Deutsche Telekom have joined forces to bid for Malta-based Tipico, industry sources said.

The German telecoms company is reportedly seeking a minority stake in Tipico - Germany's largest private sports betting group - as it seeks to expand revenue streams outside its traditional business, while Centerbridge would purchase the majority.

The planned offer may value Tipico at about €1 billion or roughly nine times its expected core earnings, in line with the valuation of listed peers like GVC, the sources said.

Tipico was founded by three students in the 1990s. Within a few years, it became a leading European betting provider

Buyout groups CVC and XIO as well as Czech lottery firm Sazka are also expected to submit an offer by a deadline next week, the sources added. Tipico and its owners as well as the potential bidders declined to comment. Efforts to obtain a comment from XIO proved futile.

Tipico was founded by three students in the 1990s. Within a few years, it became a leading European betting provider with brick and mortar locations, later adding an online presence.

Tipico has been licensed for betting and online casino operations in Malta since 2004 but also has branches in Germany, Austria, Croatia, Gibraltar and Colombia.

It has over 5,000 employees, 200 of them in Malta, and operates through 1,000 franchise partners – 750 of them in Germany.

(Reuters, with additional reporting by the Times of Malta)

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