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

Exciting news for British sports betting and online gambling fans! Entain, a leading conglomerate in the industry, is set to acquire Swedish online gambling firm Enlabs for £250 million. This comes after a successful end to the previous year and just days after rejecting an £8.09 billion offer from US casino giant MGM Resorts.

Formerly known as GVC Holdings, Entain sees the acquisition of Enlabs AB as a strategic move to strengthen its presence in the rapidly growing Baltic and Nordic markets. The deal will be financed with existing cash reserves and each share of Enlabs will be acquired at 40 Swedish Kronas.

CEO Shay Segev stated, “This acquisition perfectly aligns with our expansion strategies as we look to enter new and emerging international markets.” This decision was made despite MGM Resorts’ repeated attempts to undervalue Entain’s worth.

The positive impact of this merger is already evident in the stock market, with both Enlabs (owner of NinjaCasino and Optibet) and Entain experiencing slight increases in their share prices.

The Benefits of Acquiring Enlabs

Enlab’s President Niklas Braathen will continue to lead the company in its expansion efforts. Braathen expressed his confidence in this partnership, stating, “We recognized the strategic importance when Entain proposed this acquisition. Our interactions with the team have only reaffirmed our belief that Entain is the perfect home for our brand, employees, and clients.”

Entain’s projected earnings for 2020 are between £825 million and £845 million, higher than their previous estimate of £770 million to £790 million. This impressive growth can be attributed to a strong performance in the final quarter, despite challenges faced by retail businesses due to the pandemic and subsequent lockdowns.

MGM Resorts Underestimating Entain’s Value

It has been reported that MGM Resorts’ bid for Entain undervalues the company’s potential in the growing US gambling market. The US is expected to see a significant boom following the Supreme Court’s decision to overturn PASPA.

While MGM offered a takeover at 1,383 pence per share, Entain’s current value is at 1,455 pence per share – an increase of almost 28%. With plans for rapid expansion and more acquisitions, Entain aims to dominate the market in the near future.