Entain strengthens US sports betting offering with $266M purchase of Angstrom Sports

UK's Entain has announced the acquisition of Angstrom Sports, a US-based provider of sports forecasting and data analytics. The deal was signed at $105.8 million (£81 million), with additional contingent payments of up to $159.4 million (£122 million) over three years, meaning a potential consideration of up to $266 million (£203 million).

The acquisition is expected to expand Entain's presence in the US and enhance its capabilities in sports modeling, forecasting, and data analytics, allowing for greater pricing accuracy and risk management in US sports betting products.

Angstrom utilizes simulation-based predictive modeling to offer a range of pricing and forecasting capabilities to sportsbook clients. Primarily serving the US market, its offering covers the most popular competitions and leagues in the country.

Jette Nygaard-Andersen, CEO of Entain, expressed excitement about the acquisition, stating: "Their next generation forecasting, pricing and risk management capabilities will unlock significant opportunities across BetMGM's (Entain's joint venture with MGM Resorts) US sports betting offering, particularly in the fast-growing markets of parlay and in-play wagering."

The acquisition of Angstrom Sports will position the Ladbrokes owner as the only global operator with a full in-house suite of end-to-end analytics, risk, and pricing capabilities for US sports betting products, said the firm in a statement.

The integration is set to provide customers with an enhanced sports betting experience, offering optimized parlay and in-play products, improved betting opportunities, and accelerated pricing expertise and risk management.

Sion Colley, CEO of Angstrom Sports, stated: "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."

The acquisition is expected to be completed in the third quarter of 2023, subject to regulatory approvals. Entain's shares rose nearly 1% in early trading following the announcement.

Entain has a track record of expanding its portfolio through strategic acquisitions, and over the years has added several betting groups to its portfolio to expand into Canada, the Netherlands, and other parts of Europe. The company's most popular brands, Ladbrokes, Coral and bwin, were bought through acquisitions.

The Angstrom deal further fuels Entain's acquisition spree in recent months, including the purchase of Polish bookmaker STS Holding S.A for £750 million ($946 million). And in June, Entain also completed its purchase of Tiidal Gaming NZ, owner of esports betting developer Sportsflare for CA$13.2 million ($9.9 million).