British-based gambling company Sky Betting and Gaming is to be sold to Canadian sector peer Stars Group in a deal worth US$4.7bn.
Stars will buy Sky Bet, the firm behind the Sky Vegas and Sky Casino brands, from major shareholders CVC Capital Partners and Sky PLC (LON:SKY).
Private equity firm CVC currently holds a 71% stake in Sky Bet while Sky owns 20%. The remaining shares are held by Sky Bet's management, including chief executive Richard Flint.
Stars, the owner of PokerStars, said the deal will create the largest publicly-listed online gaming company in the world.
Rafi Ashkenazi, the chief executive of Stars, said the “landmark” acquisition would complement the PokerStars online card room.
“Sky Bet operates one of the world’s fastest growing sportsbooks and is one of the United Kingdom’s leading gaming providers,” he said.
Sky said in a statement that it would receive about £425mln in cash and 7.6mln newly issued shares, or about 3% of Stars Group, worth about £145mln. The broadcaster sold 80% of Sky Bet to CVC in 2015.
The deal, which is expected to be completed later this year, puts an end to speculation Sky Bet would soon announce a £3bn flotation.
In January, reports circulated that CVC had hired investment bank Rothschild to look at options for a stock market listing.
Stars has been expanding its operations across different regions with recent acquisitions in Australia including CrownBet and William Hill Australia.
The group’s purchase of William Hill Australia, announced last month, followed a year-and-a-half after a failed attempt to merge with the parent company William Hill PLC (LON:WMH).