Kambi Acquires Shape Games, for Up To €78.1M


Kambi Group plc (Nasdaq First North Growth Market: KAMBI), a Malta-based sports betting company, acquired Shape Games, a Copenhagen, Denmark-based specialist in front-end technology, for EUR 78.1 million.

The transaction, which is to be paid entirely in cash for an upfront payment of €38.5 million, also includes a performance earnout of up to €39.6 million, potentially increasing the total consideration to €78.1 million, all in are to be paid in cash.

With the acquisition, Kambi has strengthened its sports betting offering. Shape Games’ front-end technology will enhance Kambi’s capabilities in the mobile space, where the vast majority of sports betting revenue is generated. Together, Kambi and Shape Games will enable operators to offer their players a bespoke sports betting experience like never before.

Led by Christian Risom, Chief Executive Officer, Shape Games is a front-end provider focused on increasing customer engagement and retention by delivering its customizable, fully native front-end technology to leading sportsbook and casino operators in regulated markets support financially. The native sportsbook frontend offers a variety of highlight features that provide end users with an enhanced user experience. The casino product offers many features for the end customers, e.g. B. reading about specific offers and subscribing to a notification when a specific retailer is online.

In general, every country has regulated casinos to look out for in order to enjoy the best possible user experience. Among other things, there is eg Non-GamStop UK Casinos which often deserve the players’ attention.

The company’s complementary customer retention capabilities, which include personalization, loyalty, stats and free-to-play gaming, offer operators the opportunity to drive growth and revenue. Partners include Danske Spil and Norsk Tipping, as well as Kambi partners BetWarrior and JACK Entertainment. In 2021, the company generated revenues of €7.6 million with an EBITDA of €2.8 million and 2022 is forecast to grow 100% year-on-year following several key partner wins.

Shape Games was founded in 2018 by Risom, Chief Product Officer Nicolas Linde and Chief Technical Officers Ole Gammelgaard and Philip Bruce, who will all continue to lead the company post-acquisition. Shape Games will continue to offer its services to all operators on its own, but closer technical and commercial integration with Kambi will allow Kambi to offer an enhanced service to current and future partners. The company employs approximately 80 full-time employees and has offices in Denmark, Spain, the Isle of Man and Latvia.

Led by Kristian Nylen, Chief Executive Officer and Co-Founder, Kambi is a provider of premium sports betting services to licensed B2C gaming operators. Its services cover a wide range from front-end user interface to odds composition, client information and risk management, built on an in-house developed software platform. Its 40+ clients include ATG, Churchill Downs Incorporated, Kindred Group, LeoVegas, Penn National Gaming and Rush Street Interactive.

The company employs more than 1,000 people with offices in Malta (HQ), Australia, the Philippines, Romania, Sweden, the United Kingdom and the United States.