Raketech expands into japan via acquisition of Casumba Media
Raketech, a leading online affiliate and content marketing company, takes the next step in its geographical expansion with the acquisition of Casumba Media a Maltese registered media company with operations mainly in Japan. Casumba offers an extensive amount of affiliate websites in the Japanese market.
The agreed purchase price amounts to EUR 2.0 million, representing a multiple of approximately 3x EBITDA for the last twelve months, with the possibility of additional earnout payments based on certain performance measures.
Through the acquisition, Raketech gets an immediate footprint in Japan as an emerging market in iGaming that attracts big interest from many of Raketech’s partners. The founders of Casumba will continue to be involved in the operations and use their know-how to support Raketech to roll out products in Japan, and possibly other Asian markets in the long-term. Raketech’s technical strength and experience will be used to further optimise the assets of Casumba to facilitate organic growth.
Michael Holmberg, CEO of Raketech said: “This is another milestone in Raketech’s history and fully in line with our strategy to expand into new markets. We see many operators looking at Japan and this acquisition is an opportunity for Raketech to be part in an emerging market where our customers want to grow. We look forward to working together with the Casumba team to develop the products and in the long run launch new products together.”
Raketech has acquired all outstanding shares in Casumba as at 30 August 2019 for an upfront payment of EUR 2.0 million, with the possibility of additional earnout payments based on certain performance measures. Part of the earnout is capped up to a maximum of EUR 2.1m until 31 December 2021, and part of the earnout is uncapped, based on future performance up until 31 July 2024. The acquisition will as at closing be settled using Raketech’s current cash balance. Part of the earnout can be settled by Raketech’s own shares. As a result of the acquisition, Raketech’s revenues outside the Nordics are expected to reach approximately 10 percent of total revenue.