Kambi Group plc (Nasdaq First North Growth Market: KAMBI), a Malta-based sports betting company, acquired Shape Games, a Copenhagen, Denmark-based front end technology specialist, for €78.1m.
The deal, which is all to be paid in cash for an upfront consideration of €38.5 million, also includes a performance-related earnout of up to €39.6 million, potentially bringing the total consideration to €78.1 million, all to be paid in cash.
With the acquisition, Kambi has strengthened its sportsbook proposition. Shape Games’ front end technology will enhance Kambi’s capabilities in the mobile space where the vast majority of sportsbook turnover originates. Combined, Kambi and Shape Games will empower operators to deliver tailored sports betting experiences to their players like never before.
Led by Christian Risom, Chief Executive Officer, Shape Games is a front end provider, focused on driving customer engagement and retention through the delivery of its customizable, fully native frontend technology to leading sportsbook and casino operators in regulated markets. The native sportsbook frontend offers a multitude of highlight features that provide end-users with an improved user experience. The casino product offers a lot of features for the end customers such as reading about specific deals and subscribe to a notification when a certain dealer is online.
Generally speaking, in any country there are regulated casinos to look for in order to enjoy the best user experience possible. E.g., among other states, there are Non GamStop Casinos in the UK that often deserve the attention of players.
The company’s complementary customer engagement capabilities, which include personalisation, loyalty, statistics, and free-to-play games, provide the ability for operators to drive incremental growth and revenue. Partners include Danske Spil and Norsk Tipping, as well as Kambi partners BetWarrior and JACK Entertainment. In 2021, the company generated revenue of €7.6 million at an EBITDA of €2.8 million, with 2022 forecast to deliver 100% year-on-year growth following several major partner wins.
Founded in 2018 by Risom, Chief Product Officer Nicolas Linde, and Chief Technical Officers Ole Gammelgaard and Philip Bruce, all of whom will continue to lead the company post-acquisition, Shape Games will continue to provide its services on a standalone basis to all operators, but a closer technical and commercial integration with Kambi will enable an enhanced service to be offered to Kambi’s current and future partners. The company has approximately 80 full-time equivalent employees, with offices in Denmark, Spain, the Isle of Man, and Latvia.
Led by Kristian Nylen, Chief Executive Officer and Co-founder, Kambi is a provider of premium sports betting services to licensed B2C gaming operators. Its services encompass a broad offering from front-end user interface through to odds compiling, customer intelligence and risk management, built on an in-house developed software platform. The 40-plus customers include ATG, Churchill Downs Incorporated, Kindred Group, LeoVegas, Penn National Gaming and Rush Street Interactive.
The company employs more than 1,000 staff across offices in Malta (headquarters), Australia, Philippines, Romania, Sweden, the UK and the United States.