Kambi bolsters esports prospects with Abios acquisition
Stockholm-listed betting supplier strikes £12.5m deal to integrate “esports DNA” into wider Kambi business
Kambi has sealed a SEK150m (£12.5m) deal to acquire esports data and odds provider Abios.
The agreement consists of an initial consideration of SEK150m, paid in cash, with up to SEK120m to be paid in earn-outs related to the future product development and revenue performance of Abios.
Founded in Stockholm in 2013, Abios is spearheaded by CEO Oskar Fröberg and CTO Anton Janér, both of whom will retain their leadership roles following the acquisition.
Kambi has revealed Abios will continue to provide its products and services to both Kambi and non-Kambi customers following completion of the deal.
“The combination of these valuable capabilities will enable Kambi to offer a best-in-class esports product and expedite Abios’ growth and this is fully aligned with Kambi’s strategy to integrate specialised high-tech trading units into its modularised platform,” Kambi said.
Kambi also highlighted the “steep growth trajectory” of esports betting, which it claimed would be an important future revenue stream for the supplier in both Europe and the US.
Kambi CEO Kristian Nylén suggested the company had been eyeing up an esports-related acquisition for some time.
“The esports category has long been under careful consideration by Kambi and we now feel it’s the opportune moment to take the next step and build out our capability in what is a vertical of great global potential,” Nylén explained.
“In Abios, we gain the esports DNA we keenly sought, and which complements the heritage and experience we already possess in sports betting.
“Oskar and Anton have built a fantastic team that knows what it takes to succeed in esports and I’m excited to not only see the Abios business grow, but also what the integration of Abios to Kambi’s modular platform will bring to esports betting in the future,” he added.
Abios clients include Kindred Group, LeoVegas and Pinnacle Sports, as well as global tech giant Microsoft.
The firm has approximately 40 staff members operating in Stockholm and Manila and generated revenue of SEK18m in 2020.
Abios CEO Fröberg hailed the deal, adding: “Not only do they trust in our people and capabilities, but we share the same values and long-term vision.
“The opportunity in esports is compelling as ever and we look forward to exchanging knowledge with Kambi and adding their experience and muscle power to our entrepreneurial nature,” he added.
Earlier this month, FTSE 100 operator Entain acquired esports betting and media platform Unikrn for an undisclosed sum as gambling firms look to expand into this growing vertical.
Entain now plans to spend £50m to create an in-house esports betting platform led by new hire Justin Dellario, who has become the company’s new head of esports after leaving Twitch.