Gambling firm ups the stakes with £11.6m acquisition
A Staffordshire firm specialising in obtaining new customers for online gambling businesses has been acquired in a near £12m deal.
Online Media UK, based close to Keele University, targets specific territories and sporting events to identify potential gamblers for its various affiliates.
It has been acquired by Malta-based Catena Media in a deal worth £11.65m. The deal was part-advised out of Birmingham.
By acquiring Online Media, Catena Media has added another market channel to its customer offering and additional strength to the Paid Media segment. The acquisition includes assets such as the domain names Bets.co.uk, Bonuses.co.uk and iGamble.co.uk and certain thereto related assets.
Catena said the acquisition took it a step nearer its goal of becoming a global leader within the online gambling lead generation industry.
Online Media is said to have gathered a highly effective player acquisition strategy based on 10 years’ worth of data and trading experience. During this time it has created various tools and platforms for operating the business.
The purchase price for the Online Media assets amounts to an upfront payment of £11.65m in cash, in conjunction with the transfer of the assets. In addition, there is an earn-out of maximum £5.77m, which is based on the revenue performance of the acquired assets over a period of one year.
To achieve the full earn out amount, Online Media needs to generate revenue growth in excess of 75% during the 12-month period.
Online Media, which was advised on the deal by the Birmingham office of BDO, specialises in horse racing and football, and derives most of its business from the UK.
Approximately 80% of the revenues it generates are from regulated markets and about 90% of the revenues stems from revenue share contracts.
Paul Speakman, of Online Media, said: “We are now taking the next step in our development as part of Catena Media. We believe that this is the right time for us, as together we will be able to provide an even more powerful platform for growth.”
Robert Andersson, CEO of Catena Media, said: “We work continuously to identify attractive acquisition prospects that complement and strengthen our portfolio. The acquired assets in Online Media will strengthen the sports betting offering and broaden the existing media offering to customers by adding alternative display marketing. The transaction will also further strengthen our position in the UK.”
Catena Media, which employs around 200 people, is an online performance marketing and lead generation company within the online gambling sector, with portals like AskGamblers and RightCasino. The group has established a leading market position through strong organic growth and acquisitions in its core markets.
It was listed on Nasdaq Stockholm First North Premier in February 2016 and by the end of 2016, the company’s revenues exceeded €40m.
