The sports wagering manufacture is awash in takeover rumors. Add Kambi Group Plc (OTC:KMBIF) to that list, according to ane search firm.
The Sweden-based gaming engineering provider could follow an attractive buy for a variety of suitors, noted search unfluctuating Eilers & Krejcik Gaming (EKG) in the in style(p) edition of the EKG Line report. EKG observed that Kambi’s recent defrayal of a exchangeable go forth to Kindred removes an beetle to a potency acquisition. But the analysts acknowledged that Kambi’s unexampled share repurchase computer programme could follow a signalize the keep company isn’t posing idly by waiting for a emptor to come calling.
Last year, the Stockholm-listed keep company did out with a poisonous substance contraceptive pill provision. Companies follow poisonous substance pills inward attempts to fend cancelled unsolicited acquisition offers, essentially diluting the aspiring emptor by merchandising stockpile to other investors at below-market prices. With that supply gone, Kambi is an easier target area for a buyer.
Add to that, analysts wait a flurry of mergers and acquisitions inwards the sports wagering blank this year with technology providers seen as valid sellers.
Prospective Buyers for Kambi
A change of companies, including buck private equity firms and gaming operators, could make believe runs at Kambi.
Kambi checks a few core group P/E boxes—including immediate payment flowing generation,” observed EKD. “Apollo Global Partners is looking for for slipway to monetise its Yahoo Sports asset via sports betting and Kambi could tantrum inwards as a platform. Kambi and Phoebus Apollo have got some existing golf links through Great Canadian River (owned past Apollo, sportsbook powered past Kambi) and Wagr (owned by Apollo via Yahoo and has a breast end engineering deal with Kambi-owned Shape Games).”
Another companionship that could mull a purchase of Kambi is Bally’s (NYSE: BALY). Earlier this week, the regional casino operator and the Swedish firm proclaimed a technology partnership. Additionally, Bally’s has a long story of acquisitions – some ill-fated – and the arrangement 'tween the two parties contains provisions that earmark Bally’s to purchase Kambi seed cypher inward the future.
Due to its somewhat dubious acquisition rails track record and near-term need to preserve cash, Bally’s may be cognitive content to simply stick to to the terms of the tech arrangement with Kambi. Likewise, Bally’s Sportsbook may not live able-bodied to bring forth the revenue requisite to cover version Kambi’s costs, according to EKG.
Far-Flung Idea
Acknowledging it’s non extremely likely, EKG says at that place is something of a slip for MGM Resorts International (NYSE: MGM) to potentially examine a Kambi buy.
The casino heavyweight latterly said it wants ownership of its sports wagering and iGaming technology. Currently, Entain handles that side of meat of the BetMGM business, but there is an surface area where Kambi could piddle sentience for MGM.
“Kambi is already integrated with MGM’s LeoVegas platform, making it a potentially straightforward target, although once more it mightiness command prompt B2B client losses,” concluded EKG.
With $4.5 billion inwards immediate payment on its balance sheet of paper as of March 31, MGM has the resources with which to relieve oneself deals.
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