Enlabs nets majority stake in Shogun Group in shares plus investment deal
Shogun brands will be migrated to Enlabs platform as CEO George Ustinov hails bolt-on business as “excellent complement”
Enlabs has acquired a 66.5% majority stake in Maltese-based online gambling operator Shogun Group for a total cost of €664,000 (£612,000). The acquisition was paid by issuing 229,995 shares in Enlabs to Shogun Group founders, who retain the remaining 33.5% stake in the firm. In addition to the acquisition cost, Enlabs will also invest €1m (£922,000) into the Shogun Group business. The operator has also secured an option to acquire the outstanding 33.5% share in January 2023, for an amount of five times the company’s net profit at that time. Shogun Group is based in Malta and currently operates via an external platform on a Maltese gaming licence. The business was set up in March 2017 and has been described by Enlabs as having just left the start-up stage. As part of the acquisition, Shogun Group will operate under Enlabs’ own Malta Gaming Authority (MGA) licence. Enlabs sportsbook brand BetX will also be offered by Shogun as part of the deal, with Enlabs providing full technical and logistical support to the business to help it grow. Enlabs CEO George Ustinov welcomed the deal as an “excellent complement” to existing operations and a boost to establish itself in new markets. “We now have new brands and a competent sales team with experience from global markets,” explained Ustinov. “We will get a good test for our technology and thus the opportunity to be able to develop it even more quickly. Enlabs is taking a step forward with the aim of becoming a more global online operator,” he added. Shogun Group co-founder Eric Holmberg hailed the buy-out as a “big step” for the business as it emerges from the start-up phase. “The collaboration with Enlabs ensures our opportunities to accelerate our business growth, and in addition to this we see opportunities for new opportunities via Enlabs,” Holmberg added. The deal is Enlabs’ second major acquisition since it upped its stake in Global Gaming to 54% in August. Enlabs is planning to submit a public takeover bid for the former Swedish-licensed operator later this month.