Entain, the worldwide sports betting, gaming, and entertainment company, recently announced the acquisition of STS Holdings, a sports betting operator based in Poland. Entain will acquire full ownership of STS Holdings in exchange for £750 million ($946 million). Following the successful acquisitions of Ladbrokes, Coral, and bwin, which have become the company’s most popular brands, the move is part of Entain’s European expansion strategy.
Entain’s bid for STS Holdings is £24.8 Polish zlotys ($5.97) per share, for a total of around £450 million in net cash. Since its beginning in 1997, STS has established itself as a recognized bookmaker as a licensed operator in the United Kingdom. Entain was drawn to the quality of STS operations, causing the sports betting behemoth to seek the acquisition as a method of boosting its European expansion goals.
Entain plans to fund the STS offering through its Central and Eastern Europe vertical, Entain CEE, in partnership with partner EMMA Capital. The cash will be split 75% to 25% between the two corporations, reflecting their respective ownership holdings in Entain CEE. Entain has sought the help of financial advisor Morgan Stanley to manage a book-building process and a separate retail offer to investors via a specialized platform in order to obtain the necessary money. Mateusz Juroszek, the Chief Executive of STS, and his father will provide a portion of the funds to Entain CEE in exchange for a 10% interest in the company as part of the deal.
Entain CEO Jette Nygaard-Anderson expressed excitement about acquiring Poland’s top sports betting provider, emphasizing its position in a fast rising sector. STS’s excellent brand, attractive omni-channel offering, and exceptional management team were noted by Nygaard-Anderson. The deal complements Entain’s CEE strategy as well as its larger M&A strategy, which seeks to acquire high-quality businesses with leading market positions in regulated and expanding countries. Entain sees expansion in Central and Eastern Europe as a critical component of its business strategy, with STS having a key role in the region.
STS CEO Mateusz Juroszek expressed enthusiasm for joining the board of Entain CEE and recognized tremendous growth prospects for STS under Entain’s ownership. Juroszek praised Entain as a world-class operator, citing SuperSport’s prior investment in the region in Croatia. He expressed his belief in Entain’s potential to assist STS in moving forward, emphasizing their shared goal and vision. Juroszek is excited to lead STS and work closely with the Entain CEE team.
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