Sports Betting Tech Suppliers Genius Sports and Kambi Deny Merger Speculation

Sports Betting Tech Suppliers Genius Sports and Kambi Deny Merger Speculation article feature image
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Genius Sports and Kambi Group Plc vehemently rejected speculation about M&A discussion between the companies, hours after reports of a potential merger surfaced.

As with most industries, C-suite executives in the sports betting industry are generally reticent to comment on any M&A speculation. But execs from both companies immediately rebuffed a report from newsletter "Earnings + More" that was published on Wednesday before the start of U.S. trading. Citing multiple sources, E+M reported that Genius Sports approached Stockholm-listed Kambi on a possible combination.

Such a deal would enable Genius to broaden its own managed trading services. If completed, the transaction may have been one of the most impactful involving third-party sports betting suppliers since the Supreme Court’s historic PASPA decision. The companies, however, promptly shot down the rumors.

"As policy, we do not comment on unfounded and ill-informed rumors," said Genius Sports CEO Mark Locke, in a statement. "To prevent any further speculation, we can confirm that we are not involved in any discussions of this nature with Kambi."

Stock Moves

Kambi is in the midst of a considerable transition period. In July, Kambi named former Sportradar executive Werner Becher as its new CEO, succeeding predecessor Kristian Nylén. Genius and archrival Sportradar maintain a practical duopoly on official sports betting data rights among the top North American leagues. Genius is the exclusive provider of the NFL’s official sports betting data, while Sportradar has a similar deal with the NBA. Becher was instrumental in guiding Sportradar through its U.S. IPO three years ago.

Over the past several months, Kambi has been the subject of merger speculation as the company wound down its online sports betting data partnership with PENN Entertainment. One potential suitor, MGM Resorts, recently acquired the tech stack from Tipico’s U.S. sports betting arm. That deal would appear to take MGM out of the running. As it relates to the Genius speculation, Kambi Chairman Anders Ström also denied the E+M report.

"While Kambi tends not to comment on rumor and speculation, I can confirm that Kambi is not engaged in any such discussions," said Ström in a statement.

Kambi Refutes Rumor of Potential Takeover by Genius Sports https://t.co/HHyTVgaCZv

— Yanni Tesh (@yannitesh22) September 5, 2024

Kambi shares have been on a downward trajectory this year amid disappointing financial results. Kambi projects full-year 2024 revenue of €175 million at the midpoint, up slightly from 2023 revenue of €173 million. Prior to Wednesday’s report, Kambi shares sunk 32% year-to-date. On Wednesday, Kambi surged 14% on the news, hitting a six-month high at SEK 131 a share (USD $12.74). As of 10:30 ET, Kambi traded at SEK 123.40, up 1% on the session.

Genius Sports officials traveled to Brazil this week for Friday’s Eagles-Packers matchup. The game in São Paulo marks the first time the NFL will hold a regular-season contest in South America’s largest nation. Genius gained 0.10 or 1.35% on Thursday morning to $7.34 a share. Genius is up by approximately 18.8% year-to-date.


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