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

The British sports betting and online gambling powerhouse Entain is thrilled to announce its plans to acquire Enlabs, a leading Swedish online gambling company, for £250 million. This exciting news comes on the heels of Entain’s strong performance in the previous year and its recent rejection of an £8.09 billion offer from MGM Resorts.

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

Shay Segev, CEO of Entain, stated “The acquisition of Enlabs perfectly aligns with our expansion strategies as we aim to enter emerging and unregulated international markets.” This move follows Entain’s rejection of MGM Resorts’ offer for the second time, citing that it significantly undervalued the company.

The impact of this merger is already evident in the stock market, with Enlabs trading at a 1.8% increase while Entain’s prices have also seen a marginal rise.

The Benefits of Acquiring Enlabs

Niklas Braathen, President of Enlabs, will continue to lead the company and drive its expansion in emerging markets. “We were instantly drawn to Entain’s proposal to acquire Enlabs as we recognized its strategic importance,” said Braathen. “Our interactions with the team have only solidified our belief that Entain is the perfect fit for our brand, employees, and clients.”

Entain expects to report earnings before interest, depreciation, tax, and payback of £825 million to £845 million for 2020. This is higher than their previous estimate of £770 million to £790 million, thanks to a strong performance in the final quarter despite the challenges posed by the pandemic and subsequent lockdowns on retail businesses.

MGM Resorts’ Undervaluing of Entain

In light of the expected growth in the US gambling industry following the historic Supreme Court decision overturning PASPA, Entain believes MGM Resorts significantly undervalued its operations with their bid. While MGM proposed a takeover 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.