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

Exciting news for British sports betting and online gambling giant Entain as they announce their plans to acquire Swedish online gambling company Enlabs for a whopping £250 million. This comes after a strong finish to the previous year and just days after rejecting a massive offer from US casino powerhouse MGM Resorts.

Formerly known as GVC Holdings, Entain is eager to expand its presence in the rapidly growing Baltic and Nordic markets with the acquisition of Enlabs AB at 40 Swedish Kronas per share. The deal will be funded by Entain’s existing cash reserves.

CEO Shay Segev stated, “We are thrilled to have this opportunity to further our expansion strategies by venturing into emerging and unregulated international markets through the acquisition of Enlabs.” This move comes after Entain rejected MGM Resorts’ offer for a second time, citing undervaluation of their company.

The merger has already shown positive effects on both companies’ stock prices, with Enlabs (owner of NinjaCasino and Optibet) trading at a 1.8% increase and Entain’s prices also seeing an uptick.

The Benefits of Acquiring Enlabs

Enlab’s President Niklas Braathen will continue leading the company as they expand into new markets under Entain’s ownership. “We were immediately drawn to the strategic importance of this acquisition by Entain,” Braathen commented. “Our interactions with the team have only reinforced our belief that Entain is the perfect home for our brand, employees, and clients.”

Entain is projecting earnings of £825 million to £845 million for 2020, up from their previous estimate of £770 million to £790 million. This growth was fueled by a strong performance in the final quarter, despite challenges posed by the pandemic and lockdown measures affecting retail businesses.

MGM Resorts’ Undervaluing of Entain

According to reports, Entain believes MGM Resorts’ bid was not reflective of their true value due to the expected boom in the US gambling industry. With the historic Supreme Court decision overturning PASPA, many see the US as a major market for growth.

While MGM proposed a takeover at 1,383 pence per share, Entain’s current valuation stands at 1,455 pence per share – an increase of almost 28%. With plans for rapid expansion and further acquisitions, Entain aims to dominate the market in the coming years.