Ladbrokes Owner Entain to Acquire Swedish Gambling Firm Enlabs for £250 million

Entain, a leading British sports betting and online gambling company, is eagerly anticipating its acquisition of Enlabs, a Swedish online gambling firm for £250 million after an impressive end to the previous year. This news comes on the heels of Entain rejecting an £8.09 billion offer from US casino giant MGM Resorts.

Formerly known as GVC Holdings, Entain sees the purchase of Enlabs AB as a strategic move to strengthen its presence in the rapidly growing Baltic and Nordic markets. The deal will be funded by Entain’s existing cash reserves at a price of 40 Swedish Kronas per share.

Shay Segev, CEO of Entain, stated that “acquiring Enlabs perfectly aligns with our expansion strategies as we set our sights on emerging and unregulated international markets.” This second rejection of MGM Resorts’ offer was due to their undervaluing of Entain’s worth.

The impact of this merger can also be seen in the stock market, with Enlabs (owner of NinjaCasino and Optibet) trading at 1.8% higher than usual and Entain’s prices also seeing a slight increase.

Segev further explained that “the acquisition presents exciting growth opportunities for us in both new and existing markets. With our expertise in product marketing, cutting-edge proprietary technology, and scale, we are confident in driving even more success for Enlabs.”

The Benefits of Acquiring Enlabs

Niklas Braathen, President of Enlabs, will remain at the helm and lead the company’s expansion into emerging markets. Braathen expressed his confidence in Entain as the perfect fit for their brand, employees, and clients.

Entain is expecting earnings before interest, depreciation, tax, and payback to be between £825 million and £845 million for 2020. This is a significant improvement from their previous prediction of £770 million to £790 million due to a strong performance in the final quarter despite challenges posed by the pandemic and subsequent lockdowns on retail businesses.

MGM Resorts’ Underestimation of Entain’s Worth

According to reports, Entain believes that MGM Resorts’ bid was too low considering their potential for growth in the US gambling industry. The US market is expected to experience a significant boom following the Supreme Court’s decision to overturn PASPA.

While MGM offered a takeover price of 1,383 pence per share, Entain is currently valued at 1,455 pence per share – an increase of almost 28%. With plans for rapid expansion and further acquisitions in place, Entain aims to dominate the market in addition to continuous growth.