Kambi acquires data and odds provider Abios for $31M to expand esports betting

Kambi Group has acquired esports data and odds provider Abios, announced the company on Tuesday. The deal is expected to enable Kambi to capitalize on the growing opportunities of the esports wagering market, projected to double in size by 2025.

The agreement involved an initial consideration of €26 million ($30M): €14.5 million ($17M) in cash payout, with a further €11.8 million ($13.8M) in earnout incentives reserved for product development and future performance of Abios assets.

Abios is a B2B esports company founded in Stockholm in 2013, which provides services ranging from data to odds and visualisation to industry operators, including Kindred Group and Pinnacle Sports, as well as technology companies such as Microsoft.

Kambi is excited to announce that global esports specialists @AbiosGaming are joining the Group, transforming Kambi into a leading provider of esports products and services,

More here: https://t.co/Ggq9rGHbpP#weknowwhatittakes pic.twitter.com/rpSX5zdgPo

— Kambi (@KambiSports) August 24, 2021

In 2020, Abios generated revenue of €2 million ($2.3M). CEO Oskar Fröberg and CTO Anton Janér will retain their roles following the acquisition.

On the announcement, Fröberg said: “Having built a strong relationship over many years, we believe Kambi to be the optimal partner for Abios.” The CEO believes that the opportunity in esports “is compelling as ever” and that Kambi’s experience will provide a key asset to Abios’ entrepreneurial nature. This is particularly of interest for Kambi Group, as the company has long been considering expanding its offerings within the segment.

“We now feel it’s the opportune moment to take the next step and build out our capability in what is a vertical of great global potential,” said Kristian Nylén, Kambi Chief Executive Officer and Co-founder. “In Abios, we gain the esports DNA we keenly sought, and which complements the heritage and experience we already possess in sports betting.”

The company sees esports as an important future revenue stream, according to a new press release from Kambi upon the announcement.

“In the absence of traditional sports, esports became a popular vertical for wagering during the pandemic, therefore establishing a top-class esports product reduces our exposure to any potential risk to traditional sports in the future,” described Nylén, who expects Kambi will see results by investing now, at a “relatively early stage.”

We couldn’t be more excited about joining @KambiSports .

We want to thank all our employees who have passionately worked to create amazing esports products. Without you, we wouldn’t be where we are today.

//Anton Janér & Oskar Fröberg, Abios

Read more:https://t.co/5l2t0dMBBv pic.twitter.com/k59H6Ea3Yx

— Abios (@AbiosGaming) August 25, 2021

Kambi Group admits to be looking to add products complementing its sportsbook, which the new acquisition does by also expanding revenue streams into areas such as content and data provision. Moreover, esports allows the company to appeal to slightly different demographic, in particularly in the US and Europe markets.

“If we look at the US specifically, esports is hugely popular but we don’t feel anyone has really cracked the esports betting market yet, particularly when it comes to live betting, so we see a great opportunity to take a lead in that area,” remarked the CEO.

On when should benefits begin to materialize, Nylén said the company will get to work “straight away,” but momentum is expected to build “throughout 2022 and beyond.”