(Reuters) -Ladbrokes-owner Entain (LON:ENT) said on Tuesday it will buy Poland-based sports betting operator STS Holdings for 750 million pounds ($946 million) to further its footprint in Europe.
Entain, which owns Coral betting shops as well as the bwin and partypoker online brands, said its offer is priced at 24.8 Polish zlotys ($5.97) for each STS share held, and that it will pay about 450 million pounds in net cash for the acquisition.
Entain's most popular brands, Ladbrokes, Coral and bwin, were bought through acquisitions and the bookmaker has been rapidly expanding in Europe, with its latest deal being the buyout of 365scores in April.
STS, founded in 1997, is the one of the largest bookmakers in Poland and has licenses to operate in the UK and Estonia.
London-listed Entain said its Central and Eastern Europe venture, Entain CEE, and partner EMMA Capital, will fund the STS offer in proportion to their ownership in Entain CEE - about 75% and 25%, respectively.
The company plans to raise about 600 million pounds through an accelerated bookbuild and a separate retail offer in connection with the deal .
STS Chief Executive Mateusz Juroszek and his father, who own about 70% of the Polish firm will re-invest part of their proceeds into Entain CEE for a 10% stake in the venture, Entain added.
($1 = 0.7927 pound)
($1 = 4.1504 zlotys)