JPJ Group is to pay the equivalent of £490m to acquire Gamesys, excluding its sports brands and games, in a deal that sees the company take on Virgin Games, Virgin Casino, Monopoly Casino and Heart Bingo.

JPJ Group

The agreement, intended to create what JPJ Group sees as a “world class online gaming company”, comprises a mixture of £250m in cash – of which £175m is funded by an add-on to JPJ’s existing debt facilities – and £240m through 33.7m newly issued JPJ shares.

The enlarged group will be renamed Gamesys Group plc and should qualify for inclusion in the FTSE 250.

It is proposed that Lee Fenton (currently CEO of Gamesys) will become the enlarged group's CEO, with Robeson Reeves (currently COO of Gamesys) becoming the group's COO.

Neil Goulden and Keith Laslop will remain in their current roles and Simon Wykes will assume the role of transition director at completion for a 12-month period.

Goulden, executive chairman of JPJ, said: "This acquisition marks an important transformational step in JPJ's growth, providing significant benefits for shareholders, employees and customers.

“For shareholders, we expect the acquisition to deliver earnings accretion in the first full financial year of ownership, while our employees will benefit from the combination of two companies with a strong commitment to responsible gaming and where the greater scale will further enhance our product development and technology capabilities.

“Our customers will also now have an even greater choice of major brands and different games, all on one platform, creating a truly leading UK and international operator. The rationale for the acquisition of Gamesys is based on growth and both teams – at JPJ and our new colleagues joining us from Gamesys – are excited and motivated by the great opportunity which lies ahead."