Kambi moves for Shape Games in potential €78.1m deal
Sports betting supplier flexes M&A muscles with acquisition of front-end tech specialist to improve product offering
Kambi has acquired front-end tech specialist Shape Games for an initial €38.5m in a move that the supplier said would “significantly strengthen” its product offering.
The acquisition of the Copenhagen-based firm also includes a performance-related earnout of up to €39.6m, bringing the total value of the deal to €78.1m.
Shape Games was founded in 2018 and has 80 employees across Denmark, Spain, the Isle of Man and Latvia.
In 2021, Shape Games generated revenue of €7.6m and an EBITDA of €2.8m, with a 2022 forecast to deliver 100% year-on-year growth.
Shape Games provides tech to the likes of Danske Spil and Norsk Tipping, allowing operators to differentiate respective front-ends for local markets.
The supplier also provides a selection of customer engagement and retention tools, including personalisation, loyalty, statistics and free-to-play games.
Under the remit of the deal, Kambi will use Shape Games tech as part of its turnkey and modularised packages with operators.
Shape Games will also continue to supply its product on a standalone basis.
London-based VC firm Oakvale Capital advised Shape Games during the process.
Kristian Nylén, Kambi CEO, said the acquisition of Shape Games was part of Kambi’s strategy to acquire both technology and talent to enhance its offering.
Nylén said: “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,” he added.
Christian Risom, Shape Games CEO, commented: “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.”