M&A: Entain expands its US presence by the acquisition of Angstron Sports

UK-based sports betting and gambling company, Entain, has expanded its presence in the US by acquiring Angstrom Sports, a sports modeling, forecasting, and data analytics firm, in a deal worth up to £203 million /(US) $266 million.

The initial payment for the acquisition is set at £81 million, with an additional £122 million in contingent payments to be made over a three-year period. The transaction is expected to be completed in the third quarter of 2023.

Simulation-based predictive modelling

Angstrom Sports utilizes simulation-based predictive modeling to offer pricing and forecasting capabilities for various US sports competitions and leagues. The acquisition will enable Entain to provide a comprehensive suite of in-house analytics, risk management, and pricing capabilities to its US operators, notably BetMGM, a joint venture with MGM Resorts International. Entain anticipates that the deal will increase the number of betting opportunities available, leading to long-term margin enhancement.

Sion Colley, CEO of Angstrom Sports, expressed excitement about joining forces with Entain and continuing to deliver unique and exciting betting opportunities in the US sports market. Colley noted the shared commitment to innovation and believes the partnership will enable the companies to provide best-in-class products and experiences to sports betting customers through Entain’s leading global brands.

This acquisition follows Entain’s previous purchases this year, including Polish sportsbook operator STS for £750 million and sports media company 365scores for £120 million. The company has a track record of expanding its presence through strategic acquisitions, with popular brands like Ladbrokes, Coral, and Bwin added to its portfolio.

Unparalled sports betting experience

Entain CEO Jette Nygaard-Andersen emphasized that the addition of Angstrom Sports will enhance the development of the Entain Platform and unlock significant opportunities for BetMGM’s US sports betting offering, particularly in the growing markets of parlay and in-play wagering. The acquisition aims to provide customers with an unparalleled sports betting experience supported by advanced in-house data analytics, a global platform, and a market-leading brand.

The acquisition will bring to BetMGM’s sports betting offering. Hugaard-Andersen emphasized that Angstrom’s next-generation forecasting, pricing, and risk management capabilities will significantly enhance the customer experience, particularly in the growing markets of parlay and in-play wagering.  She explained that the acquisition aligns with Entain’s commitment to providing customers with unrivaled sports betting experiences supported by advanced in-house data analytics and a global platform.   She said, “Over the past nine months, we’ve executed 18 transactions and welcomed a host of new brands, new markets and thousands of new colleagues around the world. As the chief executive of this rapidly growing business, one thing is certain, we never sit still!”

M&A Strategy

Entain’s recent M&A strategy has attracted significant attention, including a revolt by major stakeholder Eminence Capital over the company’s £750 million acquisition of Polish bookmaker STS. The revolt was primarily based on concerns about Entain’s capital allocation strategy and its decision to issue new shares to finance the deal. Despite this, Entain remains committed to its expansion plans and sees the Angstrom Sports acquisition as a valuable addition to its portfolio.

Entain’s stock (ENT.L) is trading at GBp1,239.00, representing a slight decrease of 1.04 percent.

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