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

Exciting news for British sports betting and online gambling enthusiasts! The renowned Entain conglomerate has announced its plans to acquire Enlabs, a leading Swedish online gambling firm, for a whopping £250 million. This comes after the company’s impressive performance in the previous year and their recent rejection of an £8.09 billion offer from US casino giant MGM Resorts.

By purchasing Enlabs AB, formerly known as GVC Holdings, Entain aims to strengthen its presence in the rapidly growing Baltic and Nordic markets. The acquisition will be funded from the company’s existing cash reserves and is expected to bring numerous benefits.

According to Shay Segev, CEO of Entain, “Acquiring Enlabs perfectly aligns with our expansion strategies as we look forward to venturing into emerging international markets.” This move also marks Entain’s second rejection of MGM Resorts’ offer which they believe undermines their true value.

The impact of this merger can already be seen in the stock market as both companies’ share prices have increased since the announcement. Enlabs, which owns popular brands such as NinjaCasino and Optibet, saw a rise of 1.8% while Entain’s prices also experienced a marginal increase.

The Benefits of Acquiring Enlabs

Niklas Braathen, President of Enlab’s will continue leading the firm and spearheading its expansion in emerging markets. “When Entain proposed the acquisition, we immediately recognized its strategic importance,” said Braathen. “Our interactions with the team have only reaffirmed our belief that Entain is the perfect fit for our brand, employees, and clients.” he added.

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

MGM Resorts’ Undervaluation of Entain

In light of the expected growth in the US gambling industry following the historic Supreme Court decision overturning PASPA, Entain believes that MGM Resorts’ bidding amount undervalues their operations. While MGM offered a takeover at 1,383 pence per share, Entain’s current value stands at 1,455 pence per share – an impressive increase of nearly 28%. With plans for quick expansions and further acquisitions in place, Entain aims to dominate the market.