The potential all-cash deal values Stride’s ordinary shares at a price of £1.51 ($1.90) per share, which would cost Rank £114.5m ($144.5m).

News of the acquisition boosted Stride’s opening market share price by 27% to £1.49.

In February, Stride said it was reviewing shareholder options to increase value and it was looking at the possibility of selling the company.

Its most recent financial report, the six months ending 28 February, shows Stride’s net gaming revenue declined 13% year-on-year to £39m. Stride attributed this to regulatory headwinds across the UK’s online gaming market.  

Rank, meanwhile, has been investing in operations to attract a younger demographic to its main operations, meccabingo.com and grosvenorcasinos.com.

Stride is primarily focused on the UK market and operates more than 150 brands, including Regal Wins, Magical Vegas and Spin and Win.