(Sharecast News) – Ladbrokes owner Entain said on Thursday that it has offered to buy Swedish sports betting firm Enlabs AB for around SEK2.80bn (£250m), as it upgraded its full-year expectations after a “strong” final quarter.
Entain, which announced earlier in the week that it had rejected an $11bn takeover approach from MGM Resorts, has made a recommended cash offer of SEK40 for each Enlabs share. The offer has been recommended by Enlabs’ board, and shareholders holding around 42.2% of the total number of Enlabs shares have undertaken to accept it.
The company also lifted its full-year expectations following a strong final quarter of 2020. Earnings before interest, tax, depreciation and amortisation are now expected to be between £825m and £845m, up 6% to 8% compared to the guidance given in the third quarter.
Entain said that for the year to the end of December 2021, Enlabs is expected to generate net gaming revenue of 89.5m (£80.5m) and EBITDA of 23.5m (£21.1m). The deal is expected to be earnings accretive in Entain’s first full year of ownership.
Enlabs mainly operates online sports betting and gaming brands across the Baltic region, with a small retail presence. It is the market leader in Latvia, the second largest in Estonia and a top-five operator in Lithuania.
Entain said the acquisition is directly aligned with its stated growth strategy of entering locally regulated markets where it does not currently have a presence.
Chief executive officer Shay Segev said: “We are hugely excited by the growth opportunities it presents both in its existing markets and through new market opportunities. Enlabs is already a strong and rapidly growing business in its own right, but we now have a fantastic opportunity to turbocharge its growth by leveraging the power of our unparalleled proprietary technology, scale, product and marketing expertise.”
