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

Exciting news for British sports betting and online gambling enthusiasts as Entain, the conglomerate behind brands like Ladbrokes, Bwin, and Coral, has announced plans to acquire Enlabs, a Swedish online gambling company. This move comes on the heels of a successful year for Entain, which recently changed its name from GVC Holdings. The company hopes to solidify its presence in the rapidly growing Baltic and Nordic markets with this acquisition worth £250 million.

According to Shay Segev, CEO of Entain, “The decision to acquire Enlabs perfectly aligns with our expansion strategies as we aim to enter emerging and unregulated international markets.” This comes just days after Entain rejected an £8.09 billion offer from US casino giant MGM Resorts.

The acquisition is already making waves in the stock market, with Enlabs’ share prices rising by 1.8% and Entain’s also seeing a slight increase. Segev explains that this deal presents exciting growth opportunities for both companies as they combine their product marketing expertise and technology.

The Benefits of Acquiring Enlabs

Enlab’s President Niklas Braathen will continue to lead the company under Entain’s ownership and help expand its presence in emerging markets. “We immediately recognized the strategic importance when Entain proposed acquiring Enlabs,” says Braathen. “Our interactions with the team have only reaffirmed our belief that Entain is the perfect home for our brand, employees, and clients.”

Entain is expecting strong financial results for 2020, with estimated earnings of between £825 million and £845 million. This improvement can be attributed to a robust final quarter performance despite the challenges posed by the pandemic and resulting lockdowns.

MGM Resorts’ Undervaluation

In previous reports, Entain has expressed its belief that MGM Resorts’ bidding offer undervalued its operations in light of the expected growth in the US gambling market. With the Supreme Court’s decision to overturn PASPA, many see the US as the next major venue for industry growth. Despite MGM’s offer at 1,383 pence per share, Entain’s current value stands at 1,455 pence per share – an increase of almost 28%. With plans for rapid expansion and further acquisitions, Entain aims to dominate this market.