ZEAL Network has entered the UK market through the acquisition of the remaining 96.5% of shares in SevenCanyon, the UK-based prize draw operator, of which it already holds a 3.5% stake.
The German lottery operator expects the acquisition to cost approximately £33.8m (subject to post-completion adjustments, including an adjustment for vehicle inventory in the single-digit millions of GBP range), as well as an earn-out payment of up to £4.8m, to be paid over a period of six months after completion.
ZEAL noted that the deal opens the door for further UK expansion ‘through ZEAL’s capabilities in acquisition marketing, monetisation, customer retention, data analytics, regulatory professionalism, and platform operations’ and it expects the UK prize draw market to continue progressing ‘towards more formalised rules’.
Dr Stefan Tweraser, Chief Executive Officer of ZEAL Network SE, commented: “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.”
SevenCanyon – ‘highly profitable’
ZEAL will now add the SevenCanyon brands of 7days Performance, Redline Competitions and UK Carp Competitions to its product portfolio, comprising digital prize draws and offerings with non-cash prizes such as houses, cars, and lifestyle products.
The acquisition financing is supported by a €40m term loan with a duration of seven years, arranged by Deutsche Bank.
Following consolidation, ZEAL’s management board believes that SevenCanyon will make a ‘meaningful contribution’ to its revenue and EBITDA, with necessary revenue guidance adjustments to be assessed once the IFRS presentation of SevenCanyon’s revenue streams has been finalised.
The operator confirmed EBITDA in the range of €70m-€75m ‘under the assumption of a normal jackpot environment in Germany’, as well as ‘anticipated non-recurring expenses in the mid-single-digit millions of euros in connection with the transaction’.
ZEAL expects a positive impact on EBITDA in the high-single-digit millions of euros for the first full financial year following transaction completion. In the most recent financial year 2026, April 2025-March 2026, SevenCanyon generated an operating profit of over £10m.
Andrea Behrendt, Chief Financial Officer of ZEAL Network SE, added: “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.”
