Entain Reportedly Discussing Acquisition of Sports Data Company
Posted on: May 19, 2023, 07:37h.
Last updated on: May 19, 2023, 09:01h.
Entain, which recently announced its purchase of Israel-based sports data company 365scores for $160 million, has set its sights on a new target. Business Insider, citing unidentified but qualified sources, says the global gaming company is closing in on a deal to purchase Angstrom Sports.
Angstrom Sports is based in the UK but focuses mostly on the US sports market. It offers pricing and analytics that “produce the most accurate lines in the industry,” according to its website.
The three sources Business Insider spoke with said Entain will reportedly pay around $200 million for the acquisition, although both sides are still negotiating the final terms. Since Entain and Angstrom are keeping quiet on the issue, details are limited.
Angstrom a Solid Target
Angstrom has been around since 2018, according to data platform Forge, and has found a way into several US markets, including Tennessee. The state’s Sports Wagering Advisory Council approved it to offer live odds data to sportsbooks in January of last year.
As the US sports betting market continues to mature thanks to the arrival of more regulated markets, sports analytics companies have become hot targets for acquisitions. Entain previously said it will focus more on the regulated markets that offer the best value, and this could help it gain strength in the US.
Because live betting, or betting on a sports event after it has started, has increasingly become more popular, Angstrom will also fortify Entain’s ability to serve the market. Business Insider emphasized a report from research firm Eilers and Krejcik Gaming earlier this month that cited Angstrom as a company that could “help operators with in-play and [same-game-parlay] modeling.”
The acquisition could also be a precursor to Entain gaining an autonomous position in the US sports betting industry. It still runs BetMGM as a joint partnership with MGM Resorts International, but wants to “end its financial support” of the company as soon as it reaches profitability.
That could occur later this year. After it does, there’s a possibility that MGM may offer to buy out its partner, which would leave Entain possibly looking at ways to establish its own roots in the US.
A previous theory suggested that Entain might sell its 50% stake in BetMGM to MGM and then leave the US market. The acquisition of a US-focused sports data company seems to indicate that this won’t happen.
Entain On the Move
Entain has been making a number of deals around the globe, thanks in part to the $1 billion in funding it received in the fourth quarter of last year. Its movements have included operations in Croatia, New Zealand, Australia, and other locales as it strengthens its global portfolio.
At the same time, it’s also been making internal adjustments, with long-time executive Robert Hoskin leaving the company later this year. Hoskin has been a major part of the Ladbrokes owner’s legal oversight, having most recently served as the Chief Governance Officer since 2020.
The company has also faced some challenges in different markets as it has responded to regulatory complaints. It has weathered all of the trouble as well as could be expected.
The news of the latest potential acquisition, and of Hoskin’s departure, hasn’t had a huge impact on the company’s stock. On the London Securities Exchange, it’s trading at £1,473 (US$1,833.74) at the time of writing after closing Thursday at £1,476 (US$1,836.88).
The stock’s price dropped to £1,452 (US$1,807.01) briefly Friday morning before immediately rebounding.