Sports betting service provider Kambi Group has announced the acquisition of esports data and technology company Abios for SEK150m (~£12.57m) in cash.
In addition, up to SEK120m (~£10.05m) will be paid in earnouts related to product development and Abios’s ‘future revenge performances’. As a result, the acquisition could eventually total SEK270m (~£22.63m).
Since its launch in 2013, Abios has provided data, odds and visualisation services to sports betting operators such as Kindred Group, LeoVegas Group and Pinnacle Sports. According to the release, the data company generated SEK18m (~£1.5m) in revenue last year.
It has been revealed that despite being purchased by a sports betting provider, Abios will continue to provide its services to both Kambi and non-Kambi customers.
ESI spoke to Kambi Group’s COO Erik Lögdberg to discuss how the purchase came about and its significance to the company.
Lögdberg said: “Earlier this year we started talking to Abios and we saw that this actually could be a really good opportunity. It (esports data) is still quite early days but we really connected with the people that are in the organisation. We could see how we could complement each other in so many areas between traditional sports and esports.”
In addition, Lögdberg highlighted that the purchase was in line with Kambi Group’s strategy to pursue both organic and acquisitive growth opportunities due to the company’s strong net cash position.
He continued: “For a couple of years now we have been interested in strengthening our business, through M&A…. So we’ve been actively looking at all the various parts of our current operation where there could be interesting opportunities.
“We obviously have been dipping our feet into esports betting for quite a few years, and we’ve been able to take it somewhere. We have reached a decent volume, but what we see in the market is that this could be so much better.”
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Abios’s CEO Oskar Fröberg and CTO Anton Janér will remain in their leadership roles following the acquisition.
On the acquisition, Fröberg commented: “Having built a strong relationship over many years, we believe Kambi to be the optimal partner for Abios. Not only do they trust in our people and capabilities, but we share the same values and long-term vision.
“The opportunity in esports is as compelling as ever and we look forward to exchanging knowledge with Kambi and adding their experience and muscle power to our entrepreneurial nature.”
Esports Insider says: This is a significant deal for Kambi Group as the firm looks to strengthen its position within esports. By securing a data provider the sports betting firm will not only be able to bolster its own properties, but provide services to other companies looking to utilise esports data.