According to the latest Eilers & Krejcik Gaming report, the Swedish technology provider for the gaming industry could be the next target for a takeover.
Kambi Group Doesn’t Wait Idly for a Suitor
EKG believes that Kambi’s repayment to the Kindred Group convertible bonds worth $8.3 millions has been a great success in removing a potential overhang for upcoming acquisitions.
The same experts also noted that an independent sportsbook, which has partnered up with visionary operators from around the world, is not waiting patiently for a buyer to knock. Their share repurchase programme could be a clear indication of the exact opposite.
Kambi has removed the poison pill provision in 2022 that was preventing all unsolicited acquisition offers by selling stocks to investors below market value.
Since the provision is no longer in place, potential buyers have a lot easier time identifying the provider of Sports Betting Services.
The mergers and acquisitions expected in the sports betting sector in 2023 will target technology providers. This means that Kambi could be the next company to be acquired.
Apollo Global Partners, Bally’s & MGM are potential buyers for the group.
We can name a few reputable gaming operators and private equity firms as the most likely candidates to take a shot at the Group. Apollo Global Partners, Bally’s and other names are at the top of this list.
In the first week of this month, the Swedish company and the latter had already signed a new technology partnership. The agreement includes a number of provisions which would allow Bally’s the opportunity to obtain Kambi’s code within a short time frame.
Apollo Global Partners has been looking for ways to monetize Yahoo Sports through sports betting. Kambi could be the answer, thanks to their existing connections through Apollo-owned Great Canadian or Wagr. Apollo has a partnership in front-end technology with Shape Games, which is owned by Kambi.
MGM Resorts International, according to the EKG report is another major name that could consider buying Kambi. MGM, a NYSE-listed casino group, has stated its desire to own Kambi’s iGaming technology and sports betting software.
It is possible that MGM could be more interested in Kambi because it already belongs to MGM’s LeoVegas. EKG believes that the loss of clients from business-to-business could be a deal-breaker.
MGM Resorts LeoVegas, announced at the beginning of May that it had acquired Push Gaming to accelerate its global growth.
