Sports betting platform provider Kambi is stepping up its front end to match its back end with the acquisition of Shape Games. Per the release, Kambi will pay €38.5 million up front with the potential for an additional €39.6 million from the earnout. The deal has the potential to be worth as much as €78.1 million, all paid in cash.
“I’ve always been clear on our intention to acquire technology and talent that will complement and enhance our sportsbook proposition, and I have no doubt Shape Games will do just that. Having worked closely with Shape Games and its experienced team over recent years, I have seen first-hand how their technology enables operators to extract the full value of the Kambi sportsbook and provides the level of control operators require to deliver bespoke experiences to their players, said Kristian Nylen, Kambi Chief Executive Officer and co-founder.
“While Shape Games will continue to grow and offer services on a standalone basis in line with our plans to offer a suite of modularised products, it is the ability to offer a combination of Kambi’s and Shape Games’ technology to our partners which really excites us and solidifies our position as the clear leader within the sports betting ecosystem.”
The Denmark-based Shape Games was founded in 2018 and already works with Kambi clients BetWarrior and JACK Entertainment.
“In the future, it will be the US market that drives innovation for a large part. The US is also a mobile-first market, which is perfect for our solution. Kambi is already a very successful player in the US market with many milestone deals, including an existing shared customer. All this combined makes Kambi an obvious partner to ensure maximal future success,” said Shape Games CEO Christian Risom.
The two CEOs went into greater detail on the scope and nature of the acquisition in a Q&A. The discussion also included an explanation of why now is the time to formally bring the two companies together after years of working together independently.
“The front end is a crucial part of the sports betting value chain, key to engaging and retaining players. Moreover, as sports betting regulation continues to expand across the US and further afield, some of the differences in player expectations can be stark, therefore providing the native front-end capability that offers a high level of flexibility to localize to each market will be key to us continuing our global success,” Nylen added.
While the end goal of the acquisition is to create an all-in-one solution, Shape Games will continue to service clients outside of the Kambi portfolio.