Entain strengthens US data and pricing with $265.6m Angstrom Sports acquisition
London-listed operator suggests bolt-on deal will “unlock significant opportunities” for BetMGM JV business
Entain has acquired US-facing data analytics provider Angstrom Sports in a cash-plus-earnout deal which could see the firm pay as much as $265.6m (£203m).
The London-listed operator confirmed the acquisition will include an initial payment of $106m (£81m) with an additional earnout component totalling a maximum of $159.8m (£122m), payable over a three-year period.
EGR understands the earn out component is based on the financial performance of the business, as well as other factors over the next three years, however specifics on this have not been disclosed by Entain.
Focusing on the US market, London-based Angstrom Sports functions as a provider of sports modelling, forecasting and data analytics, using modelling to enhance pricing across US sports betting products and markets.
Angstrom Sports was founded in 2018 by former Ernst & Young head Jonathan Blezard and Sporting Group veteran Matt Wood.
The deal will see Entain take Angstrom in-house, with the firm’s assets deployed to augment Entain’s flagship joint venture business, BetMGM, which it operates on a 50/50 basis with its US partner MGM Resorts International.
Entain has said the deal will provide a “significantly greater number” of betting opportunities, optimizing parlay and in-play products, as well as increasing the accuracy of pricing and risk, factors which the firm suggested would ultimately enhance its US margin.
Entain CEO Jette Nygaard-Andersen suggested the deal would “accelerate” the development of the Entain platform, which provides the primary base for the BetMGM brand in the US.
“[Angstrom’s] next generation forecasting, pricing and risk management capabilities will unlock significant opportunities across BetMGM’s US sports betting offering, particularly in the fast-growing markets of parlay and in-play wagering,” Nygaard-Andersen commented.
“This acquisition will provide our customers with an unrivalled sports betting experience underpinned by enhanced in-house data-analytics, a global platform and market leading brand,” she concluded.
Angstrom Sports CEO Sion Colley hailed the acquisition as a positive move for the business over the long term.
“We’re excited to join forces with Entain to continue delivering unique and exciting betting opportunities across US sports,” Colley said.
“Entain shares Angstrom’s passion for innovation and our partnership will enable us to realize our ambitions in bringing best-in-class products and experiences to sports betting customers through Entain’s market leading global brands,” he added.
The acquisition, which is expected to complete in Q3, is Entain’s second major deal in the space of two months, following the acquisition of Polish bookmaker STS £750m.