Part 2: M&A update
Table 2: Acquisitions in the affiliate space, Jun18-Jun19
Date Acquirer Target Market focus
Initial price Total w/ earnout
Dec-18 Better Collective Ribacka Sweden €15m €15m
Mar-19 Natural Intelligence Sidelines US sports UNK UNK
May-19 Better Collective RotoGrinders US sports $21m Jun-19 Raketech CasinoFever.ca Canada UNK UNK
Jun-19 Net Gaming Europe BettingGuide.se Sweden UNK UNK
Jul-19 Net Gaming Europe BettingOnline.co.uk UK £1.6m £0.6m
Source: Company releases
In the US Better Collective is up against some $21m for 60% of the RotoGrinders business, with
familiar competitors. Catena Media has previously the remaining 40% to be bought between 2022-
established a strong presence in the US via 24 at a multiple of between five- and 10-times
the acquisition of the NJplay assets back in EBITDA. The company said the valuation will be
December 2016 (when the Supreme Court determined by the future growth and profitability
decision on PASPA was but a pipe dream). of RotoGrinders and Better Collective’s other
business in the US.
Catena Media US-facing sites:
• PlayUSA
• PlayNJ
• LegalSportsReport.com
• OnlinePokerReport.com
• NJgamblingsites.com
• Bonusseeker.com
• PlayPicks.com
• TheLines.com Still Sweden
The pair are now talking up the prospects of the subsequent trading performance, it shows
what the expanded regulated US sports betting a degree of faith in the potential in Sweden
market might mean for their businesses. Catena ahead of launch. Indeed, the deal made the
Media said it was “happy” with what its US point about the long-term view of the Swedish
business achieved in the first quarter, albeit the market much more than the comments from the
delays in the US roll-out meant the company had various operators and affiliates about the revenue
abandoned its 2020 EBITDA target. Suggesting performance in the regulated space since January.
Among the remaining acquisitions, the ones
that stick out are again Better Collective with its
Ribacka deal at the end of last year, and the much
more recent deal from Net Gaming Europe for the
BettingGuide.se business.
Most obviously with the Ribacka deal, which
saw Better Collective lay out an initial €15m
with a further possible €15m dependent on
that the “talk of new states has now turned to
action”, the company said it was likely that US The slowing pace of M&A
revenues would double in the second half of 2019 In a comment about the recent paucity of
(though it failed to say what its US earnings were transactions in the affiliate space, the analysts at
in the first quarter). Redeye noted that many of Better Collective’s
Better Collective also, obviously, struck a
positive tone when it announced its RotoGrinders
acquisition, and said it was “preparing for the
competitors “have paused their acquisition
expansion strategies due to financials limitations”.
The spate of M&A was largely funded by bank
next states to open”. The bolstered US capability debt and bond issuance and, particularly with
certainly came at a price; Better Collective paid Catena Media, highly rated shares. Indeed, an
iGaming Business • Affiliate Monitor • August 2019
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