Entain expands spending spree with $266M acquisition of Angstrom Sports
Entain Plc ( OTC:GMVHY ) continues its acquisition spree, announcing on Monday that it will acquire sports analytics provider Angstrom Sports for $266 million in cash.
Ladbrokes owners will pay $106 million upfront and $159.71 million in contingent payments over three years. The transaction is expected to close this quarter.
Angstrom Sports is a professional next-generation sports modeling, forecasting and data analytics provider. Its simulation-based predictive models create sophisticated pricing and forecasting capabilities," Entain said in a statement. "Angstrom's proprietary products are unique among all U.S. sports betting products and markets for their accuracy, richness, speed and breadth. stand out. "
The acquisition of Angstrom Sports continues Entain's acquisition spree, which has seen the Coral owner acquire a number of smaller companies over the past two years to strengthen its betting and technology portfolio.
Angstrom Sports can enhance BetMGM
Entain owns half of BetMGM, one of the largest online sportsbooks in the United States. MGM Resorts International (NYSE: MGM ) controls the other 50%.
Entain’s primary responsibilities in this engagement include providing technical and risk analysis. The acquisition of Angstrom Sports enhances the buy-side's capabilities in these areas, while strengthening BetMGM's offering in the fast-growing, lucrative live betting and Single Parlay (SGP) markets.
"We are pleased that Angstrom will join Entain, allowing us to accelerate the development of the Entain platform," Entain CEO Jette Nygaard-Andersen said in a statement. "Their next-generation forecasting, pricing and risk management capabilities will provide BetMGM's U.S. sports Gambling products offer significant opportunities, particularly in the fast-growing parlay and live betting markets.”
London-based Angstrom Sports provides pricing solutions for U.S. sporting events, including college basketball and football, Major League Baseball (MLB), NBA, NFL, NHL and PGA Tour, according to its website.
Impact of Purchasing Angstrom Sports
Through its deal with Angstrom Sports, Entain signals a clear commitment to the U.S. market, which it can enter through BetMGM.
It's no secret in the sports betting industry that MGM wants to take control of all of BetMGM, and while the casino operator's executives have said they won't consider acquiring Entain again, there are rumors among analysts that MGM may take Action excludes Entain. BetMGM equations because it has the financial strength to do so.
Other market participants believe Entain needs to be careful when financing acquisitions, as mistakes in this area could lead to acquirers making unnecessary upfront offers that do not fully assess the company's value.
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