Entain said it will launch a new venture to drive growth in Central and Eastern Europe markets and purchase Croatia’s SuperSport Group after the Ladbrokes owner reported a surge in its first-half profit.

Entain will pay EUR600 million in cash to EMMA, a sportbook and gaming operator in Croatia, on completion and a further contingent, expected to be around EUR90 million, based on SuperSport’s earnings performance in fiscal 2022. EMMA will contribute its 25% stake in SuperSport to Entain CEE at an initial implied valuation of EUR200 million, and will be entitled to dividends from completion to the end of 2024.

The acquisition will be financed through a EUR700 million bridge loan from a range of lenders, and is expected to complete in the fourth quarter, conditional upon regulatory approvals, it said.

SuperSport is expected to be mid-single digits earnings accretive in its first full year of ownership for Entain.

“By bringing together Entain’s global expertise and EMMA’s regional investment track record, we are creating a growth platform with considerable opportunity,” Chief Executive Jette Nygaard-Anderson said.