That deal was announced just before Christmas and will create one of the largest gambling groups in the world.
Patrick Coffey – from Barclays’ well-respected London investment banking arm – reckons the takeover is attractive for three reasons.
“1) Greater scale: a key attribute in the gaming sector in our view, 2) High growth: buoyed by revenue but mainly by cost synergies, and 3) Geographic diversity: guarding against higher taxes in mature markets,” he wrote in a note to clients on Tuesday.
Coffey also notes that both management teams have a “strong track record” of integrating complicated businesses and beating synergy guidance – which it currently expects to be "at least £100mln."
As a result, the analyst has initiated his coverage of GVC with an ‘overweight’ rating and a £10.66 price target.
Shares in GVC jumped 1.8% to 942p early on Tuesday, making it one of the top gainers on the FTSE 250.