Entain, the owner of a number of prominent iGaming brands, including Ladbrokes, Coral, Gala, partypoker, and others, made a major announcement late on Tuesday, confirming that it is buying out STS Holdings, the Polish sports betting operator. The company’s investment amounts to roughly $950m (£750m)
The transaction was negotiated at $5.97 for each STS share. Entain is paying £450m of the sum in net cash, Reuters reported. This constitutes a major expansion move for the gaming giant in Europe and one of the biggest moves the company has done in recent months since the purchase of 365scores in April.
Moving forward, Entain hopes to significantly strengthen its presence in the vibrant and fast-developing Polish market, but also use STS’ reach in other jurisdictions where the company holds licensure to operate, including in the United Kingdom and Estonia. The company is being bought out by Entain CEE, Entain’s company focusing on the Central and Eastern European markets, and a joint venture with EMMA Capital.
Entain CEO Jette Nygaard-Anderson was similarly excited about this partnership and opportunity and said:
"We are delighted to be acquiring the leading sports-betting operator in Poland, which is a hugely exciting and fast-growing market."
These two companies will hold ownership of 75% and 25% respectively, which is based on their participation in funding the deal. Naturally, the deal was welcomed by STS CEO Mateusz Juroszek and his father, who have owned the bulk of the company and run it as a family business with 70% control. The duo is not out of the business, though, as they would be reinvesting the funds of the deal back into Entain CEE and claim a 10% stake in the division.
STS is a force to reckon with in the Polish market as well. The company has around 785,000 active users, and it has experienced double-digit growth in its customer base over the past several years. Presently, the company also owns 400 betting shops across Poland, and it has plans to continue scaling up both in retail and online.
Entain similarly commented that this transaction was in line with the broader strategy for Entain CEE which is the company’s overall mergers and acquisitions plans for the future. Scaling across Central and Eastern Europe is a key objective for the company and something that will now be facilitated through the addition of STS as part of the portfolio.
Image credit: STS Group