Kambi Group PLC announced that it has acquired award-winning front-end sports betting technology specialist Shape Games for an upfront consideration of €38.5 million. The acquisition 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.
Headquartered in Copenhagen, Denmark, Shape Games is the industry’s leading front-end provider, focused on delivery of its customizable, fully native front-end technology to operators in regulated markets. Shape Games’ roster of partners includes Danske Spil and Norsk Tipping, as well as Kambi partners BetWarrior and JACK Entertainment, with each operator leveraging Shape Games’ technology to offer highly differentiated user experiences.
Shape Games’ technology complements Kambi’s high-performance sportsbook and existing front-end capabilities, creating a compelling proposition that 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. The sportsbook front end has become a key tool for operators to effectively differentiate their brand, localize their offering and engage players to increase acquisition and retention.
The acquisition builds upon an established partnership between the two companies. Kambi and Shape Games have successfully combined on tender processes to secure turnkey contracts, and Kambi has indicated that the closer bond this agreement delivers will ultimately lead to greater commercial success for both parties.
Shape Games will continue to provide its services on a stand-alone 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. In 2021, Shape Games generated revenue of €7.6 million at an EBITDA of €2.8 million, with 2022 forecast to deliver 100 percent year-on-year growth following several major partner wins.
“I’ve always been clear on our intention to acquire technology and talent that will complement and enhance our sportsbook proposition,” said Kambi CEO and co-founder Kristian Nylen, “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 firsthand 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.
“While Shape Games will continue to grow and offer services on a stand-alone basis in line with our plans to offer a suite of modularized 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.”
Christian Risom, Shape Games CEO and co-founder, added, “We are very happy to join forces with the leading sportsbook provider of the industry. Shape Games and Kambi have been working closely side by side for years now, and it is exciting to take this partnership to new levels.”
