Paddy Power and Betfair owner Flutter Entertainment has agreed to buy UK bingo group Tombola for £402m.
Tombola’s founder Phil Cronin, who set up the bingo firm 16 years ago, will leave the business after the acquisition, with himself and his family expected to net a fortune from the cash deal.
Based across sites in Sunderland and Gibraltar, Tombola has more than 700 employees and around 400,000 average monthly users.
It made underlying earnings of £38.5m in the year to April 30 on revenues of £164m.
The deal is set to complete in the first quarter of next year.
Peter Jackson, chief executive of Flutter, said: “Tombola is a business we have long admired for its product expertise, highly recreational customer base and focus on sustainable play.
“The brand aligns closely with Flutter’s safer gambling strategy, a key area of focus for us.”
He added: “As the time comes for Phil to hand over the reins, I would like to thank him for building the success story that the business is today and I look forward to welcoming the Tombola team to Flutter and growing a sustainable business for the future together.”