Entain, a leader in the sports betting industry is continuously expanding their global market shares in the betting industry. Continuing in this path, the Online sports betting giant Entain will Purchase STS for $945 million. According to gambling experts, this deal will help Entain’s effort to expand their influence in the European betting market.
The announcement to acquire STS, a Polish sports betting company with over 783,000 active bettors was made yesterday. In addition to the customers, Entain will also get 400 physical betting shop in Poland as part of the acquisition.
The acquisition of STS by Entain will give them the dominant position in the Polish sports betting market. This is because STS has the bigger network of betting shop and users in the Polish sports gambling market. Furthermore, STS also holds licenses to operate in the UK and Estonia.
Share in Entain Drop after the Announcement that Entain will Purchase STS
The bid to buy STS was made after the 2 largest shareholders of STS gave their approval. Mateusz Juroszek and Zbigniew Juroszek, who collectively own a 70% stake in STS were the ones to approve the deal. As part of the agreement, the Juroszek family will reinvest part of the proceeds from the sale into Entain.
Entain believes that STS is in a good position to take advantage of future opportunities in Poland. Specifically speaking, it is in the event that Poland fully allows online casino gambling in the country.
Jette Nygaard-Andersen, the CEO of Entain, is very happy about the acquisition of STS. This is because she believes STS is a strong brand in a rapidly expanding betting market. In addition, users of their sports betting products have seen a 19% CAG in 2022. Furthermore, in 2022, STS had a Net Gaming Revenue of €141.5 million.
Despite the positive outlook from the CEO of Entain, share of Entain took a drop after the announcement. This is because shares of the gaming group fell 10.5% to their lowest since March 29. According to online gambling analysts, this is because the price of the acquisition was too much. In fact, they said the value of deal was 11 times the EBITDA of STS.
On the other hand, Entain said that buying STS is a promising venture with many opportunities to grow. In terms of strategy, the purchase of STS makes sense as Entain continues to expand in fast growing regions.
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