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“ If the right [ M & A ] opportunity is there, we have capacity to take it in. But I also wouldn’ t mind having a few months now to grind and improve our market share”
JONAS WARRER, GENTOO MEDIA
Said Warrer:“ Of course, if the right opportunity is there, we have capacity to take it in. But also I wouldn’ t mind having a few months now to grind and improve our market share … where we still have a relatively low market share.”
“ We should also be able and capable to do [ M & A ]… but the next few months [ we will ] focus on consolidating and getting things stabilised.”
IF THE SUIT FITS
Gentoo takes a holistic and disciplined approach to evaluating acquisitions. The asset must align with Gentoo’ s core affiliate operations, especially in the casino and sports betting verticals.
Gentoo seeks favourable terms, such as earnouts and phased payments. Past transactions( e. g. KaFe Rocks) were described as“ very attractive deals”.
The valuation must be compelling based on expected synergies, revenue potential, and scalability. Finally, seamless integration is critical. Acquisitions are expected to merge functionally into Gentoo’ s core systems, not operate as standalone units.
“ The attractiveness of an acquisition is driven by several factors … strategic fit, the payment plan and the business case itself,” said Warrer.
“ We are not just buying a new unit. We are merging things into the functional organisation.”
Gentoo emphasises full integration of acquired companies into its operational structure, ensuring alignment in processes, technology and strategic goals.
“ When we take over Casinomeister, we use the full force of the Gentoo Media organisation to improve [ it ].”
The company is open to using leverage to fund acquisitions but does not operate with a fixed leverage ceiling. Instead, leverage decisions depend on the quality and structure of the deal.
“ Could you go up like 2x EBITDA if there’ s a good acquisition?” Warrer asked.“ That’ s a hard one. It depends on strategic fit, payment plan, business case and how easy is it to onboard and merge.”
Management acknowledged that capital allocation – including M & A, share buybacks and dividends – is an active discussion at the board level, now made possible by the company’ s strong post-split financial position.
“ Now we have a place to stand where we can have meaningful discussions about capital allocation. There’ s a financial flexibility that we haven’ t had before,” said Warrer.
April 2025