Catena Media strengthens its sports betting with acquisition of Online Media
Catena Media takes another step towards true global leadership and the position as the fastest growing company within lead generation through the acquisition of certain assets in Online Media (UK) Ltd.
Online Media is a UK based fast-growing sports betting affiliate with a strong position within alternative display marketing. By acquiring assets in Online Media, Catena Media adds another market channel to its customer offering and additional strength to the Paid Media segment.
The acquisition includes, among other, the domain names Bets.co.uk, Bonuses.co.uk and iGamble.co.uk and certain thereto related assets.
The purchase price for the assets amounts to an upfront payment of GBP 11.65 million which shall be paid as a cash consideration no later than on May 25, 2017, in conjunction with the transfer of the assets. In addition, there is an earn-out of maximum GBP 5.77 million, which is based on the revenue performance of the acquired assets over a period of one year from the closing date, i.e. May 25, 2017.
To achieve the full earn out amount, the sellers need to generate revenue growth in excess of 75% during this period. The acquired assets have a running rate of sales of about EUR 300 000 per month and a pre-tax profit margin of more than 70%. Approximately 80% of the revenues are generated from regulated markets and about 90% of the revenues stems from revenue share contracts.
Online Media specialises in horse racing and football, and most business derives from the UK market. “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”, says Robert Andersson, CEO of Catena Media. “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”, says Paul Speakman of Online Media (UK) Ltd.