Kambi Group Plc, a key provider of technology services to sportsbook operators, has denied any involvement in takeover discussions with Genius Sports. Recent speculation suggested that Genius, a data provider to sportsbooks, was considering an acquisition of the Swedish-based Kambi. However, Anders Ström, chairman of the Kambi board of directors, dismissed these claims, stating no such conversations have taken place.
“While Kambi tends not to comment on rumor and speculation, I can confirm that Kambi is not engaged in any such discussions,” he said in a statement.
Despite these denials, Genius Sports’ shares have risen by 15.35% year-to-date, indicating a strong market position with a capitalization of $1.5 billion, significantly higher than Kambi’s $370.1 million market value. This financial robustness gives Genius the leverage to pursue potential acquisitions.
Rumors of Kambi being a takeover target are not new, having circulated since at least the second quarter of 2023. Contributors to these speculations include Kambi’s removal of a poison pill provision in 2022, which had served to deter unsolicited acquisition offers by diluting the aspiring buyer’s shares. Without this provision, Kambi could be seen as a more attractive acquisition target.
Further fuelling the rumors is Kambi’s recent withdrawal of its long-term financial targets, partly due to regulatory challenges in Brazil. This strategic change was followed by the resignation of then-CEO Kristian Nylén, with high-level executive departures often igniting takeover talks. Additionally, the trend among gaming companies towards internal development of sports wagering technology increases Kambi’s appeal as a potential acquisition.
In North America, Kambi’s notable clients include Bally’s, Churchill Downs, Penn Entertainment, and Rush Street Interactive. The company also has partnerships in Australia, Europe, and Latin America, recently extending its collaboration with Rush Street.
Genius Sports has also addressed the rumors, with CEO Mark Locke firmly denying any takeover discussions with Kambi. “As policy, we do not comment on unfounded and ill-informed rumors. To prevent any further speculation, we can confirm that we are not involved in any discussions of this nature with Kambi,” he stated.
While Genius Sports may not be interested in Kambi, the Swedish firm could still attract attention from other potential buyers. Alinea Capital Management, a Norwegian hedge fund, suggested that up to six US-based companies might be interested in purchasing Kambi following the removal of the poison pill provision in 2022.
