Building on existing partnership

Kambi acquires frontend supplier Shape Games for initial $38M consideration

Kristian Nylén, Kambi CEO.
Reading time 2:27 min

B2B sports betting services provider Kambi announced Thursday that it has now strengthened its capabilities through the addition of front-end supplier Shape Games. The acquisition of the company implied an upfront consideration of EUR 38.5 million ($38.4 million).

The deal includes a performance-related earnout of up to EUR 39.6 million ($39.5 million), potentially bringing the total consideration to EUR 78.1 million ($77.1 million), all to be paid in cash. 

Headquartered in Copenhagen, Denmark, Shape Games is focused on driving customer engagement and retention through the delivery of its frontend technology to operators in regulated markets. Shape Games' roster of partners includes Danske Spil and Norsk Tipping, as well as Kambi partners BetWarrior and JACK Entertainment.

"Shape Games' technology complements Kambi's high-performance sportsbook and existing front-end capabilities, creating a compelling proposition that will significantly enhance Kambi's capabilities in the mobile space where the vast majority of sportsbook turnover originates," Kambi stated. "Combined, Kambi and Shape Games will empower operators to deliver exciting, tailored sports betting experiences to their players like never before."

The acquisition builds upon an established partnership between the two companies. Kambi and Shape Games have previously combined on tender processes to secure turnkey contracts, and Kambi believes the closer bond this agreement delivers will ultimately lead "to greater commercial success for both parties."

Shape Games will continue to provide its services on a standalone basis to all operators, but a closer technical and commercial integration with Kambi will enable "an enhanced service to be offered to Kambi's current and future partners." 

Kristian Nylen, Kambi Chief Executive Officer and Co-founder, 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," he concluded.

The sportsbook front-end has become a key tool for operators to effectively differentiate their brand, localize their offering and engage players to increase acquisition and retention, Kambi argues. In this regard, the company says Shape Games provides both front-end and "personalization, loyalty, statistics, and free-to-play games, and the ability for operators to drive incremental growth and revenue."

Christian Risom, Shape Games Chief Executive Officer and Co-founder, commented: "We are very happy to join forces with the leading sportsbook provider of the industry. Shape Games and Kambi have been working closely side by side for years now and it is exciting to take this partnership to new levels."

"Together we will have an unmatched sports betting and casino offering for any market in the world, be it on mobile and web or in retail. Kambi's modular approach to the market allows us to form a profound and tight-knit integration with their sportsbook all the while pursuing opportunities with other sportsbook partners," he further stated.

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