The world's largest online betting group said the deal would diversify its products, expand its position in an area where historically it has not had a big presence, add a sustainable player base and enhance Flutter's operations in its core UK market.
It will also add further product capabilities and expertise, the Dublin-based group said.
With gambling groups under pressure to make their markets less risky for punters, Flutter noted that Tombola was the first major UK-focused operator to introduce both mandatory staking and deposit limits.
In its financial year to end April 2021, Tombola generated pro-forma revenue of 164 million pounds and EBITDA of 38.5 million pounds. The transaction is conditional on regulatory clearance and expected to complete in first quarter of 2022.
"Tombola is a business we have long admired for its product expertise, highly recreational customer base and focus on sustainable play. The brand aligns closely with Flutter's safer gambling strategy, a key area of focus for us," Flutter Chief Executive Peter Jackson said in a statement.
($1 = 0.7410 pounds)
(Reporting by Padraic Halpin. Editing by Jane Merriman)
