Kambi takes ‘another important step’ with €38.5m Shape Games transaction

Acquisition concept
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Kambi has elaborated on “another important step” regarding the group’s continued global charge after acquiring Shape Games for an upfront consideration of €38.5m. 

The transaction also includes a performance-related earnout of up to €39.6m that could potentially bring the total consideration to €78.1m. All of this would be paid in cash.

This latest step builds upon “an established partnership” between the two, and comes as Kambi looks to enhance its provision across the sports wagering value chain. 

Shape Games will continue to provide its services on a standalone basis to all operators, however, it is hoped that a closer technical and commercial integration with Kambi will enable a bolstered service to be offered to current and future clients.

Moreover, Kambi has also noted that due to “ever growing demands from operators,” particularly in the US and regarding areas such as differentiation, localisation, personalisation and empowerment, “made it clear the front end was a service we could and should further improve on”.

Kristian Nylen, Kambi Chief Executive Officer and Co-founder, commented: “I’ve always been clear on our intention to acquire technology and talent that will complement and enhance our sportsbook proposition, 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 first-hand 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 standalone basis in line with our plans to offer a suite of modularised 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.”

In addition to native front end tech, Shape Games also supplies customer engagement capabilities, which include personalisation, loyalty, statistics, and free-to-play games, with a bid to allow operators to drive incremental growth and revenue.

In 2021, Shape Games generated revenue of €7.6m and an EBITDA of €2.8m, with the current year expected to deliver 100 per cent year-on-year growth.

Headquartered in Copenhagen, Denmark, Shape Games’ roster of partners includes Danske Spil and Norsk Tipping, as well as Kambi clients BetWarrior and JACK Entertainment, each of which leverage the group’s tech.

“We are very happy to join forces with the leading sportsbook provider of the industry,” explained Christian Risom, Shape Games Chief Executive Officer and Co-founder. 

“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. 

“Together we will have an unmatched sports betting and casino offering for any market in the world, be it on mobile and web or in retail. Kambi’s modular approach to the market allows us to form a profound and tight-knit integration with their sportsbook all the while pursuing opportunities with other sportsbook partners. 

“From our perspective, this represents the best of both worlds for any customer out there. For me personally, the years we have worked with Kambi were a clear testament to the cultural match between the two organisations as both have a deeply rooted focus on best-in-class technology, customer experience and integrity in everything we do. It has always been great working alongside Kambi as collaborators and I am certain that what lies ahead is even greater.”

Shape Games was founded in 2018 by Risom, Chief Product Officer Nicolas Linde, and Chief Technical Officers Ole Gammelgaard and Philip Bruce, all of whom will continue to lead the company post-acquisition.