Bwin.party Digital Entertainment has agreed to a buyout offer from GVC Holdings of about 1.06 billion pounds ($1.62 billion), shifting its stance after the poker and sports betting firm had accepted an earlier offer from rival 888 Holdings.
GVC CEO Kenneth Jack Alexander told CNBC shortly after the deal was confirmed that he was "delighted" with the outcome.
GVC and 888 have been trying to outbid each other over the past few months in the battle for larger rival Bwin. Gambling firms are trying to bulk up in response to higher tax bills and tighter regulation in Britain and continental Europe.
Size is also seen as vital to ensure competitiveness in an online market buoyed by the use of tablets and mobile.
"I think it is absolutely crucial to have scale," Alexander told CNBC on Friday. "I think unless you have scale, you are going to struggle to compete in the space, in the coming years."
He said that both betting businesses would be combined onto Bwin.party's platform, which he described as "superior."
GVC's offer of 25 pence in cash and 0.231 new GVC shares works out to about 129.64 pence per Bwin share based on the stock's Thursday close.