Freshfields Bruckhaus Deringer has advised CVC Capital Partners on its agreement to acquire a controlling stake in Sky Betting & Gaming, the online betting and gaming business owned by Sky plc.

The transaction values Sky Bet at £800 million, with Sky receiving £600 million cash on completion, together with further deferred and contingent consideration.

Sky will retain an equity stake of approximately 20 per cent in Sky Bet, which will be carved out from the Sky group. Sky Bet will continue its strong partnership with Sky Sports and, as part of the transaction, Sky has entered into a long-term brand licence agreement with Sky Bet. Sky Bet was formed in 2001 and has grown rapidly to become one of the leading operators in the UK’s online betting and gaming market.

The Freshfields team was led by Tim Wilmot and corporate senior associate Charles Hayes.