London-listed Rank Group has reached an agreement to acquire rival UK online bingo and casino operator Stride Gaming for £115.3m.

The two companies have reached agreement on the terms of a recommended cash offer which will see Rank Bidco, a wholly-owned subsidiary of Rank, acquire the entire issued and to be issued share capital of Stride at 151 pence per share.

This equates to a premium of 29 per cent compared to Stride’s closing share price of 117.50p on Thursday, valuing the business at £115.3m.

"Despite Stride's strong market position, ownership of its own leading technology and excellent long term growth potential, the board recognises the scale of the mounting regulatory and fiscal pressures which the UK gaming sector is facing," said Stride Gaming chairman Nigel Payne. "It is also concerned that investor sentiment to Stride is likely to continue to be negatively impacted by these external pressures for some time."

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