Entain, one of Europe’s largest online gaming companies, has continued its push to acquire entities around the world with the announcement that it recently purchased sports betting operator STS Holdings for a total consideration of $946 million, $569 million of that in cash.
STS is one of Poland’s largest bookmakers in the country, with a 40 percent market share. It also holds licenses in Estonia and the U.K.
Mateusz Juroszek, STS chief executive officer, said in a statement that he believes the deal will make his company stronger.
“In our view, the joining of STS, as proposed, with the Entain Group is a promising venture, giving the company the opportunity for another leap in growth,” Juroszek said. “STS is the largest bookmaker in Poland and we are excited about working with Entain to unlock the synergies of STS and Entain CEE and the Entain Group as a whole to continue to deliver on STS’s exceptional performance.”
One market analyst worried that there could be potential pushback from an upper-end valuation multiple (for a single country, single product company), limited cost savings, a slightly complicated deal structure and an equity placing to fund the acquisition.
This is one of several acquisitions by the company, whose headquarters are in London.
In April, Entain purchased sports media business 365scores for $160 million. Officials said the move was to improve its interactive content and experience for users.
“The combination of 365scores’ deep expertise in data-driven sports media content alongside Entain’s global scale and market leading platform capabilities will provide customers with a broader offering of interactive content and experiences,” the gambling company said in a statement at the time of the sale.
In March, Entain purchased esports betting solutions firm Sportsflare for $13.3 million. CEO Thomas Hearne of Tidal Gaming, parent company of Sportsflare, said the deal was a natural.
“Sportsflare will be a great fit with Entain’s strong presence in the industry and our board of directors is confident that Sportsflare joining Entain is the best long-term solution for its employees and partners,” Hearne said.
The company had two other acquisitions last year. In August 2022, Entain purchased Croatia bookmaker SuperSport for $731 million. Two months prior, they bought online gambling company BetCity, which is based in the Netherlands. The price was $850 million.
