Poll: Which tie-up would you like to see in 2017?
Recent speculation surrounding GVC has us thinking about next year’s potential big-name M&A deals
The egaming industry is awash with M&A speculation and last week was no different, with reports GVC Holdings had recently held separate discussions with both Ladbrokes Coral and William Hill over a potential combination.
And the wave of consolidation, which saw a number of big-name tie-ups in 2016, is unlikely to end any time soon, with increased taxes and regulation expected to see operating costs rise yet again.
GVC will once again be a prime contender to play a role in this push over the next 12 months. Whether the recent reports have any basis or not, CEO Kenny Alexander has spoken of his desire to do one more big deal to push his firm into the FTSE100.
The firm currently lacks a strong sportsbook or casino presence in the UK so a combination with either William Hill or Ladbrokes makes some sense, however, it would take a brave man to strike any deal involving a large high-street presence in the current climate.
Another firm we may expect some movement from next year is the Kindred Group. Its recent re-brand to reflect a more emphasised multi-brand strategy may hint at further additions to its portfolio, following from last year’s Stan James and iGame deals.
Furthermore, rumours continue to swirl about a Kindred and Betsson tie-up – a deal which would certainly raise a few eyebrows as well as create a European powerhouse.
Nordics-facing firms are likely to feel the brunt of expected regulatory and tax changes in the coming years and let’s not forget both Betsson and Kindred also have sizeable revenues coming from the soon-to-be regulated Dutch market.
888 will also be on the lookout for a firm which can help bring its sportsbook in-house. While the firm continues to grow strongly using the Kambi-provided solution, CEO Itai Frieberger has spoken publically his firm’s desire to acquire its own technology.
The firm lost out in its pursuit of both William Hill and bwin.party over the past year or so, but could a deal be done for another sportsbook-focused firm? Recent rumours have included Tipico and BetVictor, although the former was recently bought by private equity firm CVC Capital Partners.
Meanwhile, we should also expect some movement Down Under. Ladbrokes Coral is reportedly attempting to gate-crash the planned merger of indigenous giants Tabcorp and Tatts, with plans to make an offer for Tabcorp.
Local media has also placed question marks against the continued operations of William Hill and Unibet, among others, in what is a highly competitive sports wagering market so further market consolidation could well be on the cards.
With all this in mind, this week’s poll asks which mega deal would you like to see take place next year. Have you say on the EGR Intel homepage or by following this link.