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

Entain, a leading British sports betting and online gambling conglomerate, has announced its plans to acquire Enlabs, a Swedish online gambling firm for £250 million. This comes after a successful year for Entain and the rejection of an £8.09 billion offer from US casino giant MGM Resorts.

The acquisition of Enlabs AB will further strengthen Entain’s presence in the rapidly growing Baltic and Nordic markets. The deal will be financed using Entain’s existing cash reserves and is expected to be finalized at 40 Swedish Kronas per share.

CEO Shay Segev stated, “This acquisition aligns perfectly with our expansion strategies as we look to enter emerging and unregulated international markets. We believe that Enlabs has great potential for growth and we are excited to leverage our expertise, technology, and scale to drive its success.”

Last week, Entain rejected MGM Resorts’ offer for the second time, citing undervaluation of their operations. The market also reflects this sentiment as Enlabs’ stock prices rose by 1.8%, while Entain’s also saw a marginal increase.

The Benefits of Acquiring Enlabs

Niklas Braathen, President of Enlabs, will continue to lead the company as it expands into new markets under Entain’s ownership. “When Entain proposed this acquisition,” Braathen said, “we immediately recognized the strategic importance and we are confident that Entain is the perfect home for our brand, employees, and clients.”

Entain’s expected earnings for 2020 have also been revised, with a projected range of £825 million to £845 million. This is a significant increase from their previous estimate of £770 million to £790 million, driven by strong performance in the final quarter despite the challenges posed by the pandemic and subsequent lockdowns.

MGM Resorts’ Undermining Entain’s Value

According to reports, Entain believes that MGM Resorts’ bid undervalues their operations in light of the potential growth in the US gambling industry. With the recent Supreme Court decision overturning PASPA, many see the US as a key market for future growth.

While MGM proposed an acquisition at 1,383 pence per share, Entain’s current value stands at 1,455 pence per share – an increase of nearly 28%. With plans for rapid expansion and further acquisitions, Entain aims to dominate the market in this exciting time for the gambling industry.