Entain has made an offer to acquire Enlabs in a cash deal that values the Baltics operator at SEK 2.8bn ($341.6m).

The cash offer will see the Ladbrokes and Coral operator formerly known as GVC Holdings, pay SEK 40 for each Enlabs share, and has been recommended by its board.

In addition to the recommendation, shareholders holding 42% of the total number of Enlabs shares have undertaken to accept the offer.

Operator Enlabs, which is established in the Baltics and also focuses in Eastern Europe and the Nordics through its Optibet and NinjaCasino brands, is estimated to generate net gaming revenue (NGR) of €89.5m ($109.8m) for the year up until 31 December 2021.

Enlabs also acquired Global Gaming in November after purchasing the remaining shares in a company it previously held a 67% stake in, valuing the operator at SEK 450m.

Entain said the acquisition is in line with its expansion strategy across newly and locally regulated international markets in which it does not yet operate.

The operator mentioned that Enlabs chairman Niklas Braathen will remain in his role to help the group’s expansion into new markets and will invest €15m into shares in Entain within four months of the consideration under the offer.

Entain added that its full-year 2020 EBITDA is now expected to be between £825m ($1.1bn) and £845m, a 6-8% increase on Q3 guidance.

Entain CEO Shay Segev said: “Enlabs is already a strong and rapidly growing business in its own right, but we now have a fantastic opportunity to turbocharge its growth by leveraging the power of our unparalleled proprietary technology, scale, product and marketing expertise.”

The offer comes at a time Entain is considering a proposal from MGM Resorts International to acquire it for $11bn, a valuation the operator said earlier this week “significantly undervalues” it.