Entain to acquire Angstrom Sports in £200m deal
Under the deal, Entain will pay an initial £81.0m, as well as £122.0m in additional payments over a three-year period, totaling £203.0m.
Angstrom utilises simulation-based predictive modelling to offer a range of pricing and forecasting capabilities to sportsbook clients.
Primarily serving the US market, Angstrom’s offering covers the most popular competitions and leagues in the country.
The acquisition will allow Entain to offer a full suite of end-to-end analytics, risk and pricing capabilities for its US operations, namely BetMGM, which it runs as a joint venture with MGM Resorts International.
This will improve customers’ US sports betting experience including more betting opportunities, optimised parlay and in-play products, it added.
The acquisition is expected to complete during Q3 2023.
Unlocking new US opportunities
“We’re delighted Angstrom will be joining Entain, enabling us to accelerate the development of the Entain platform,” Entain chief executive Jette Nygaard-Andersen said.
“Their next generation forecasting, pricing and risk management capabilities will unlock significant opportunities across BetMGM’s US sports betting offering, particularly in the fast-growing markets of parlay and in-play wagering.
“This acquisition will provide our customers with an unrivalled sports betting experience underpinned by enhanced in-house data-analytics, a global platform and market leading brand.”
Angstrom chief executive Sion Colley said joining forces with Entain would ensure it delivers “unique and exciting betting opportunities” for US sports.
“Entain shares Angstrom’s passion for innovation. Our partnership will enable us to realise our ambitions in bringing best-in-class products and experiences to sports betting customers through Entain’s market leading global brands.”
Entain’s product led M&A
Much of Entain’s recent M&A activity is driven by deals that aid market expansion, but there’s plenty of evidence of the business bolstering its product offering through bolt-on deals.
In June, Entain completed its purchase of Tiidal Gaming NZ, owner of esports betting developer Sportsflare for CA$13.2m.
By acquiring Sportsflare, Entain added a number of betting products optimised for esports, such as a bet builder and a solution for gamers to bet on their own performance.
The acquisition further strengthened Entain’s presence in the esports betting vertical and followed the relaunch of Unikrn in December last year.
Last month, Adam Greenblatt, who has led the BetMGM venture since its formation in 2018, spoke to iGB about the importance of tech- and product-focused deals in the industry.
Buyer’s market
Entain is not the only leading force in the industry to have ramped up its M&A strategy in recent months. Several other operators have sought to acquire assets across technology and products to support their own expansion goals.
Last month, Fanatics Betting and Gaming (FBG) agreed terms on a deal to purchase the US arm of PointsBet Holdings. This was only after it returned with a higher offer following the emergence of a rival proposal from DraftKings.
PointsBet shareholders overwhelmingly voted to approve the FBG deal at the end of June. Neither PointsBet nor FBG have set a completion date for the deal.
Going back further and on the same line as Entain with Angstrom, OpenBet in August last year acquired betting technology and trading business Multi Builder. This came ahead of OpenBet’s own acquisition by sport media conglomerate Endeavor Group.
Also last summer, Betting supplier Kambi announced that it would increase its focus on modularised products rather than its full sportsbook solution. This, it said, would likely include a series of acquisitions.
Sure enough, just a month or so later, Kambi acquired front-end technology specialist Shape Games for an initial €38.5m.
Shape Games’ front-end technology supports customers with driving customer engagement and retention. The provider counts Danske Spil, Norsk Tipping, BetWarrior and JACK Entertainment among its clients.