The online gaming firm, previously recognized as GVC Holdings, has proposed to acquire the Optibet operator, Enlabs, for a substantial sum of £250 million.
This cash proposition, which translates to roughly 40 Swedish kronor per share, has been endorsed by Enlabs’ governing board. Stockholders representing over 40% of Enlabs’ shares have also approved the transaction.
Enlabs is a significant player in the realm of online sports wagering and casino games, particularly in the Baltic region. They also maintain a few physical betting establishments in the area.
In 2020, Enlabs acquired Global Gaming, which facilitated their expansion into the Nordic region with brands such as Optibet, Laimz, and Ninja Casino.
The acquisition of Enlabs is a crucial component of their strategy to expand by entering newly regulated markets. They are confident that Enlabs’ robust regional presence and brands, coupled with Entain’s technological prowess, product offerings, marketing expertise, and regulatory experience, will accelerate their growth trajectory.
Entain has declared that, should the agreement be finalized, they intend to retain Niklas Braathen, the current leader of Enlabs, to assist them in expanding their operations in the region and venturing into new markets.
Braathen has also pledged to invest €15 million in Entain stock within a four-month timeframe following the completion of the transaction, through a family-owned entity.
The acquisition is anticipated to be finalized by the conclusion of the initial quarter, contingent upon approval from regulatory bodies and Enlabs shareholders. Entain intends to finance the deal using existing funds.
“Acquiring Enlabs aligns perfectly with our strategic objective of entering newly regulated markets globally,” stated Shay Segev, the head of Entain. “We are enthusiastic about the growth prospects it presents in both existing and emerging markets.”
“Enlabs is already a robust and rapidly expanding enterprise, but now we have the opportunity to accelerate its growth by leveraging our exceptional technology, scale, products, and marketing capabilities.”
Braathen from Enlabs added: “When Entain expressed their interest in acquiring Enlabs, we immediately recognized the strategic synergy.”
Enlabs boasts extensive geographical market experience and a proven track record, combined with its market-leading proprietary technology and top-notch marketing abilities, which are the key attractions as it seeks to expand in the Baltic region and beyond.
In the meantime, Enlabs released its preliminary fourth-quarter 2020 results, indicating that revenue was between €20.3 million and €20.5 million.
Preliminary adjusted EBITDA for the three months ending December 31 is projected to be between €6.3 million and €6.5 million, corresponding to an adjusted margin of approximately 31% to 32%. Its complete fourth-quarter results will be released on February 23.
Entain is scheduled to unveil its fourth-quarter and full-year 2020 operating results on January 21.
The takeover bid follows Entain’s confirmation this week that its US joint venture partner MGM Resorts International has made a potential offer to acquire the company.
MGM Resorts’ offer provides 0.6 MGM shares for each Entain share, valued at 1383 pence per Entain share, representing a 22% premium to Entain’s share price.
MGM Resorts later confirmed the offer, stating that it would value the Ladbrokes and PartyGaming operator at approximately $11 billion. However, according to the Entain board, this significantly undervalues the business.
This week, Enlabs revealed it will willingly give up its Swedish online gambling and gaming permit as it intends to carry out “development work” on its platform before rejoining the market with a fresh license.
Enlabs was given a permit by the regulatory body Spelinspektionen in March 2020 to run gambling and gaming in Sweden through its main brand Optibet, but its services will now be unavailable until summer 2021, when Enlabs intends to introduce several brands in the market.
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