Integrating two recent acquisitions into a recently reorganized business is a massive undertaking, a challenge that EveryMatrix faced last year.
After completing an extensive vertical integration process within the company, EveryMatrix group CEO Ebbe Groes noted a change in the company’s approach to incorporating new businesses.
Last July, the company acquired UK-based betting and iGaming platform FSB through an all-cash transaction followed by the acquisition of Fantasma Games later in the year. Groes discussed these matters and more in an interview with iGB at EveryMatrix’s new London office.
“In the FSB deal, we acquired technology that was undoubtedly superior to ours, but we decided not to keep it. Integrating it into the Matrix software universe might have been an easy short-term solution, but in the long run, it would have caused more issues,” Groes shared with iGB.
Instead, EveryMatrix opted to reconstruct FSB’s technology within the company, a project heavily influenced by the original FSB team.
“There will be instances where the fit is not perfect,” Groes acknowledged. “You discover synergies you thought existed and might lose your way a bit. Once the integration is complete, we will retain none of the technology, only the insights, lessons, and wisdom gained from the original technology.”
EveryMatrix positions itself among the top-tier suppliers, evident in the recent 39% revenue growth in Q1 for the group. This growth trend is also reflected in operational expansion, with a 36% increase in staff count in the quarter, totaling 1,311 employees.
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Is Operator Insourcing a Significant Threat?
Addressing concerns about operator insourcing and the potential reduction of the supplier pool to favor incumbents, Groes believes that the issue is being exaggerated.
Competing suppliers like Kambi have expressed dissatisfaction due to the loss of key sportsbook clients to insourcing technology. However, the provider is now concentrating on diversifying its client base and expanding into emerging markets to counter declining revenue.
Groes pointed out that this challenge is primarily present in the North American market and does not pose a threat to diversified suppliers.
“Our company has been built mainly on European revenues. There are numerous opportunities. Local leaders must rise to the occasion, and our role is to support them, whether in Europe, LatAm, Asia, or Africa.”
According to Groes, the key is to empower clients to maintain some control over the front end of their third-party platform. Diversifying their product range has also been beneficial.
