Oct 13 (Reuters) - Modern Times Group Mtg Ab
* Says invests in innogames and enters multi-billion dollar online gaming market
* Says has entered into an agreement to acquire 35 pct of Innogames
* Says has an option to acquire a further 16 pct of company at same valuation
* Says Innogames has expected revenues of approximately EUR 125 mln in 2016 and an EBITDA margin of approximately 20 pct.
* Says the acquisition will be EPS accretive in year one
* Says transaction is based on an enterprise value of eur 260 mln euros for 100 pct of company
* The transaction is subject to German and Austrian merger approvals. Further company coverage: (Reporting By Simon Johnson)