Entain to Expand Polish Presence with STS Acquisition

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Entain Holdings (CEE) Ltd, alongside its joint venture partner EMMA Capital, has made moves to acquire Polish sportsbook operator STS Holding in a £750m ($946.3m) deal.

STS is a leading Sportsbook in Poland owned by chief executive Mateusz Juroszek and his father Zbigiew, who jointly control approximately 70% of the company's share capital.

The duo has received a bid of PLN24.8 per share, at an equity value of £750m, and an enterprise value of approximately £690m from Entain and has entered into a binding agreement to accept the offer.

The family will reinvest a percentage of their gains into Entain CEE, which gives them a 10% share in the business. However, their ownership stake could fall to 5% if STS fails to achieve its financial targets in 2023.

We are delighted to be acquiring the leading sports-betting operator in Poland, which is a hugely exciting and fast-growing market. STS is an exceptional business with a great brand, a compelling omnichannel offering, and an outstanding CEO and management team. The transaction is perfectly aligned with our Entain CEE strategy and our wider M&A strategy of acquiring high quality businesses with leading positions in attractive, growing and regulated markets.

Jette Nygaard-AndersonEntain CEO

Entain CEE's Strategic Benefits from STS Deal

Entain CEE's acquisition of STS is considered a strategic move as it cements the company's commitment to expand in Eastern Europe. The purchase allows the company to gain a considerable share of Poland's gambling market, which recorded a gross gaming revenue of $1.6bn in 2022 and is expected to experience a 12% growth rate over the three years leading to 2025.

STS is well-positioned to drive Entain to greater heights in Poland. The company reported net gaming revenue of PLN663m last year, with 82% of the total funds generated online. It is also the biggest sports betting retail brand in Poland, with 400 shops across the country.

Funding Arrangements

According to Entain, it will finance 75% of the deal, while EMMA will provide the remaining 25%. The funding distribution will be based on the current shareholdings of both companies in STS.

The joint venture named Entain CEE was formed between Entain and Czech investment firm EMMA Capital in August last year to make acquisitions in Central and Eastern Europe, starting with the purchase of SuperSport, the largest betting and gaming brand in Croatia.

Mateusz to Retain Office

Entain has also announced that Mateusz Juroszek will remain the CEO of STS and will join the Entain CEE board to expand the brand's presence across the region.

Juroszek became the Polish operator's CEO in 2012.

I am very excited to be joining the board of Entain CEE, and see significant growth opportunities in the Polish market for STS under Entain's ownership. Entain is a world class operator and has already made a significant investment in this region through SuperSport in Croatia. We could not have found a better partner to help us take STS into the next phase of its growth and it is clear that Entain shares our ambition and vision for its future.

Mateusz JuroszekSTS CEO

Last week, Entain announced that it has completed the purchase of Sportsflare in a CAN $13.25 million deal. The operator began the process to acquire the esports betting services provider in March of this year.

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