Kambi to acquire Danish front-end specialist Shape Games in potential €78m deal

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Kambi has followed through on its promise to make acquisitions with the purchase of Danish front-end supplier Shape Games for an initial €38.5m.

The deal includes total performance-related earnouts of €39.6m, which could potentially bring the overall purchase price to €78.1m, all of which is to be paid in cash.

Copenhagen-based Shape Games is focused on improving customer engagement and retention for betting and gaming operators through its customisable front-end technology.

The company has worked with leading operators in regulated markets for a number of years now, including Denmark’s Danske Spil and Norway’s Norsk Tipping, as well as existing Kambi sportsbook clients BetWarrior and JACK Entertainment.

In 2021, Shape Games generated revenue of €7.6m and EBITDA of €2.8m, with 2022 forecast to deliver 100% year-on-year growth following several major partner wins.

Kambi – which is traditionally a back-end software supplier – said the front-end has become a key tool for operators to effectively differentiate their brand and localise their offerings.

The acquisition leans into Kambi’s strategic modularisation strategy, whereby operators can pick and choose parts of the sportsbook supply chain.

This is designed to diversify revenue streams and should make Kambi an attractive B2B partner for clients that are not seeking a full-suite sportsbook solution.

Kambi CEO Kristian Nylén: “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.”

“Not only does Shape Games provide a best-in-class front-end, but its complementary customer engagement capabilities, which include personalisation, loyalty, statistics, and free-to-play games, provides the ability for operators to drive incremental growth and revenue,” Kambi said in a statement.

Despite joining the Kambi portfolio, Shape Games will continue to provide its services on a standalone basis to all operators.

However, a closer technical and commercial integration with Kambi will enable an enhanced service to be offered to Kambi’s current and future operator clients.

Kambi CEO Kristian Nylén said: “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.”

Shape Games was founded in 2018 by CEO Christian Risom, CPO Nicolas Linde and CTOs Ole Gammelgaard and Philip Bruce, all of whom will continue to lead the firm post-acquisition.

The company employs approximately 80 full-time staff, based in offices across Denmark, Spain, Latvia and the Isle of Man.

About the author

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Jake Evans

Jake Evans is an NCTJ-accredited journalist and editor who has covered the online gaming and sports betting industry since 2017. He is the managing editor of iGaming NEXT and has previously worked in both content and data for EGR, Stats Perform and Football Radar.

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