ZEAL Network Expands into UK Prize Draw Sector with SevenCanyon Acquisition
2026-07-09
Source: iGaming Future
ZEAL Network has acquired the remaining 96.5% stake in SevenCanyon Limited for approximately £33.8 million, marking its entry into the UK digital prize draw market. The acquisition of brands like 7days Performance and Redline Competitions is expected to contribute significantly to ZEAL's EBITDA and revenue, financed by a €40 million loan.
German online lottery giant ZEAL Network has finalized an agreement to acquire the remaining 96.5% stake in SevenCanyon Limited, a move that establishes its presence in the United Kingdom's digital prize draw market. Prior to this deal, ZEAL already held a 3.5% shareholding in the UK-based company.
SevenCanyon operates several prominent UK brands, including 7days Performance, Redline Competitions, and UK Carp Competitions. These platforms specialize in digital prize draws, offering participants the chance to win a variety of non-cash items, such as luxury vehicles, residential properties, and other high-value consumer goods.
Financially, SevenCanyon demonstrated strong performance, reporting an EBITDA exceeding £10 million for its financial year ending March 2026. The acquisition price for the outstanding shares is approximately £33.8 million in cash, which is subject to post-completion adjustments. Additionally, a potential earn-out of up to £4.8 million could be paid over a six-month period following the transaction's close.
To fund the acquisition, ZEAL has secured a €40 million seven-year term loan through Deutsche Bank. ZEAL anticipates that this acquisition will positively impact both its revenue and EBITDA once SevenCanyon is fully consolidated. The company plans to re-evaluate its revenue guidance after the International Financial Reporting Standards (IFRS) treatment of SevenCanyon’s revenue streams has been finalized. For the first complete financial year after the acquisition, ZEAL projects SevenCanyon will contribute high single-digit millions of euros to its EBITDA. ZEAL affirmed its 2026 EBITDA forecast of €70 million to €75 million, assuming a typical jackpot environment in Germany, while also noting the inclusion of anticipated one-off transaction costs in the mid-single-digit millions of euros.
Dr. Stefan Tweraser, CEO of ZEAL Network SE, expressed enthusiasm for the acquisition, stating, “SevenCanyon is one of the most successful prize draw operators in the UK – we have known them for years.” He added that the acquisition allows ZEAL to “hit the ground running in a highly attractive and growing market” and accelerates its strategy to diversify its business model with new products and markets. Andrea Behrendt, CFO of ZEAL Network SE, highlighted the financial benefits, noting, “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.”