UPDATE 1-CVC takes majority stake in betting firm Tipico

(Adds sources on value, size of stake)

FRANKFURT, April 24 (Reuters) - Funds advised by private equity group CVC Capital Partners on Sunday signed a binding agreement to acquire a majority stake in betting firm Tipico, Germany’s largest private sports betting group, CVC said.

Privately held Tipico - a sponsor of soccer clubs such as FC Bayern or Hamburg’s HSV - was put up for sale by its founders in a recent auction.

CVC said in a statement it could not give a purchase price due to confidentiality agreements.

It said the deal was subject to clearing by the relevant cartel authorities and was expected to be completed in the third quarter of 2016.

Two sources familiar with the matter put the total value of the company at 1.4 billion euros ($1.6 billion). They said that CVC’s stake amounted to 60 percent of that.

CVC took a majority stake in leading British betting firm Sky Bet in late 2014, and had been involved with similar firms such as William Hill and IG Group, the CVC statement said.

Sources earlier this month said buyout group Centerbridge had joined up with Deutsche Telekom to bid for Tipico.

They said at the time that CVC was also expected to bid, among others.

$1 = 0.8913 euros Reporting by Vera Eckert and Alexander Huebner; Editing by Ruth Pitchford