Kambi plots M&A move to enhance sports betting technology
Stockholm-listed supplier is weighing up investment opportunities in the areas of machine learning and artificial intelligence
Kambi is planning to dip into the M&A market this year as the sports betting supplier looks to utilise its strong cash position.
The Stockholm-listed firm had stored up a total cash balance of €60.8m by the end of full-year 2020 and that pot has since increased to €70.7m following strong a Q1, where revenue rose by 55% to €43.2m.
Kambi is unlikely to deviate from the sports betting arena according to CEO Kristian Nylén, who said any potential purchases would need to improve and innovate the supplier’s core sportsbook offering.
“How can we make our tools more dynamic for operators so they can express their brands in the best possible way?” said Nylén when asked about M&A in Q1. “How can we improve our technologies by making smarter algorithms for our odds compiling and risk management?”
Following Pareto Securities’ Swedish Selected Small Caps Day, EGR understands Kambi is weighing up investment opportunities in the fields of artificial intelligence (AI), machine learning and complementary sportsbook products.
Kambi CEO Kristian Nylén
“There is a big field for where we can improve within sports betting,” Nylén told KambiCast in April.
“The last couple of quarters we have had fantastic results and that has put our balance sheet in a very different position.
“There may be some other ways for us to expand and we will definitely evaluate some smaller acquisitions,” he confirmed.
Earlier this week, the Kambi CEO told EGR that some sports betting operators run the risk of “playing catch-up” from a product perspective by moving their sportsbook tech in-house.