Takeover prattle regarding Kambi Group Plc (OTC:KMBIF) is intensifying. That’s after shares of the sports betting engineering provider soared Wednesday, and one search truehearted has some interesting ideas pertaining to potency suitors.
Entering today, Kambi shares were higher past 24% month-to-date. That step not only when soundly trounces an array of other sports betting equities, but it’s stoking speculation suitors are circling the company.
In the to the highest degree recent edition of its bi-weekly EKG Line report, explore steadfast Eilers & Krejcik Gaming says companies interested in Kambi could feed the gamut of buck private equity firms, to traditional gaming entities, to still a cryptocurrency broker. That radical includes intimate names such as Aristocrat, Fanatics, and Las Vegas Sands (NYSE:LVS).
The society has long been on the run for B2B assets, and was rumored to experience kicked the tires at Evolution before this year. On face, Kambi would come along to scene within Sands’ stream strategical M.O.,” EKG says of Las Vegas Sands.
LVS has an investiture fortify aimed at iGaming and sports wagering, but it’s non been an outright emptor of companies, opting instead to get investments in smaller, arriviste firms. EKG didn’t name specific buck private equity suitors for Kambi. But with the company’s securities industry capitalisation of $6.31 billion, it’s easily digestible for any figure of buck private equity shops.
Kambi Takeover Chatter Makes Sense
Kambi takeover is sensible because technology assets are ease enticing inward the sports wagering space. But there’s more to the story.
In February, the Stockholm-listed accompany did outside with a envenom oral contraceptive pill provision. Companies take over toxicant pills inwards attempts to fend sour unsolicited acquisition offers, essentially diluting the aspiring vendee past merchandising stock up to other investors at below-market prices. With that provision gone, Kambi is an easier target for a buyer.
As for other possible suitors mentioned past EKG, Aristocrat is plausible because it lacks business-to-business sports wagering offerings. It also signaled it’s in the modality for deals with a recent attempt, though unsuccessful to gain Playtech. The search unfaltering also mentions Kindred, the fellowship from which Kambi was spun out.
“The 2 have got remained closely tied since. Kindred has lately stated its ambitions to ‘gain greater end-to-end curb of its product,’” notes EKG. “And piece an inelegant solution, an in-housing of Kambi would certainly ticking that box.”
Adding to that intrigue, Keith Meister’s Corvex Management of late amassed a 10.12% stake inward Kindred and is pushing that fellowship to sell itself.
Other Possibilities
EKG mentions ESPN, in camera held Fanatics and Rush Street Interactive (NYSE:RSI) as potency Kambi suitors.
The interesting element regarding that triad is that Benjamin Rush Street Interactive has been previously mentioned as a buyout candidate, with rumors focusing on ESPN and Fanatics as potency suitors. Fanatics is at the midpoint of a slew of sports wagering mergers and acquisitions rumors. But to date, the company hasn’t made a deal. EKG also notes crypto exchange manipulator FTX could follow a possibility.
“The crypto exchange’s interest group inwards getting US online sports betting assets is easily known (see, e.g., its failed tender for PlayUp). Kambi would let FTX a nucleus slice of the OSB puzzle, though a FTX-Kambi combination would hardly follow turnkey for FTX inwards the U.S. market, as it would want OSB market access,” concludes the explore firm.