Online Sportingbet is buying Sporting Odds, the fixed odds arm of Sporting Index, for £4.5m.

The deal will be funded by a £2.5m loan note and a balance in new Sportingbet shares issued at 101p. Sportingbet has acquired the tax losses of Sporting Odds of £6m for a maximum deferred consideration of up to £540,000, paid on an as used basis. Sporting Index will provide management services for up to two months following completion for £250,000 (exclusive).

Nigel Payne, chief executive of Sportingbet said he is delighted to be acquiring Sporting Odds: 'Over the past year Sportingbet has grown its European business significantly and this aquisition, which will be run on shore in the UK, materially increases our critical mass into the region.' Details: www.sportingbet.com