Zeal Networks approves moving back to Germany

Home » Zeal Networks approves moving back to Germany

Zeal Networks is a leading German lottery provider. Recently they said that they will move its registered office from London back to Germany following the company’s acquisition of Lotto24. At a General Meeting in London Wednesday, shareholders representing 70.5 per cent of Zeal’s voting capital voted overwhelmingly in favour (99.9 per cent) of relocation back to Germany.

A company representative told that this step would lead to some job losses from the company’s currently UK-based staff from the total 350 to 271 in the Group, which has already been told to the employees concerned. The job losses will be shared between the company’s offices in the UK, Spain and Germany.

There will be further downsizing in the future, with the purpose of reducing total number to 200 by middle of year 2020. The company’s Hamburg office — which will become Zeal’s listed office following the move — was already the company’s largest office, while the company did most of its business in Germany. With the Lotto24 takeover, the company plans to focus further on Germany and integrate the offices of the two businesses.

The company said it believes the cost synergies of integration should be around €45.6m in the first year and around €57m when the move is fully complete two years after the deal.

Dr. Helmut Becker, CEO of ZEAL Network SE, said:

“With the decision to relocate our registered office, we can now take the next formal steps to complete both the business model change from the secondary lottery business to the brokerage business permitted in Germany and the relocation of our registered office before the end of October of this year, ” “We would therefore like to thank our shareholders, who have once again supported us on our way to reunite with Lotto24.”

Source: https://www.gamingintelligence.com/lottery/54211-zeal-network-approves-relocation-back-to-germany

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