Entain eyes $1bn acquisition of Estonian operator Olympic Entertainment Group
Entain has allegedly made a $1bn buy-out offer for Estonian operator Olympic Entertainment Group (OEG).
Citing anonymous sources, Bloomberg reported that Entain is looking to acquire the company’s online business, OlyBet, alongside its operations in Lithuania and Croatia. The deal would also include an option to buy Olympic’s outstanding business in early 2023 based on its performance.
OEG operates approximately 100 casinos across Europe, the majority of which are located in the three Baltic states of Estonia, Latvia and Lithuania, and its acquisition would see the British betting firm become the region’s market leader. However, neither company has so far issued a statement regarding the rumoured takeover.
If the sale goes through, it will build on Entain’s acquisition of Enlabs AB. The €370m ($497.5m) purchase brought the Swedish iGaming company’s Optibet brand — OEG’s chief rival in the online gambling space — under the umbrella of Entain. At the time, the company claimed Enlabs’ acquisition was in line with its expansion into new markets.
Making the acquisition even more likely is the current position of OEG’s owner, London-based private equity firm Novalpina Capital. The company bought OEG for €300m in 2018, but the firm has been rocked by recent developments.
Novalpina was hit by the Pegasus spyware scandal earlier this year, which saw it enter liquidation. As a result, the company may want to offload Olympic and recoup its investment.
This news also follows DraftKings withdrawal from buy-out talks between it and Entain. In late September, the US-based sports betting brand floated a $20bn bid for the British business, but after missing one deadline, it declined to lodge a firm offer.
sOURCE : www.gamblinginsider.com