Catena Media enters the French market by acquiring top sports betting site ParisSportifs.com
ParisSportifs.com is a leading sports betting site in France and the company generates strong traffic numbers, primarily from search engines and its Twitter and Youtube channels. The acquired assets currently generate quarterly sales of about EUR 500.000.
”I am very proud that we are now entering the regulated French market through this strategic acquisition of ParisSportifs. This is in line with our growth strategy and strengthens our leading position in Europe. It’s also a strategic move for us, bringing growth in sports betting with the FIFA World Cup just around the corner,” says Henrik Persson Ekdahl, acting CEO of catena Media.
The initial purchase price amounts to an up-front payment of EUR 8.2 million, of which EUR 6.2 million will be paid in cash, and the remaining EUR 2.0 million in newly issued shares in Catena Media plc. There is also an earn-out of a maximum EUR 5.7 million, based on revenue performance over a period of one year. In a reasonable anticipated scenario, with a total earn-out payment of EUR 3.2 million, the sellers would need to generate revenue growth of between 40 and 60 percent during the earn-out period of one year. Up to 50 percent of the earn-out may be paid with shares in Catena Media plc.
The shares will be issued at a subscription price of SEK 120,97 per share, corresponding to the volume-weighted average price for Catena Media’s shares on Nasdaq Stockholm during a period of 30 trading days up to and including 12 April 2018. This means that a total of 170,221 shares will be issued, corresponding to approximately 0,3 percent of the shares and votes in the company. The shares will be subject to a lock-up period of six months effective from the closing date of the transaction.