Raketech acquires Lead Republik for €1.4m
Raketech, a performance marketing company within iGaming, is taking the next step in its geographical expansion through the acquisition of the assets of Lead Republic Ltd, a Malta-based media company with global revenues, mainly from Canada, New Zealand and Germany.
As a result of the acquisition, Raketech’s revenues from markets outside the Nordic region are expected to reach approximately 20 percent of total revenues.
The agreed purchase price amounts to EUR 1.4 million, corresponding to a multiple of approximately 3x EBITDA and 0.5x revenue based on the past 12 months, with the possibility of additional purchase price based on certain performance targets. Paid media, which constitutes a large part of revenue, is expected to have a somewhat negative effect on the Group’s EBITDA margin, while revenue and earnings are expected to be positively affected already in the short to medium term.
“The acquisition is in line with many of our strategic goals, as it increases our geographical footprint in markets important for our key partners, while also providing technical know-how in the form of a high-quality technical platform together with expertise in conversion optimization and paid media. . We also see great synergy effects from combining Lead Republic’s offering with our technical strengths in organic search optimization, ”says Oskar Mühlbach, CEO of Raketech and continues:
I am also pleased to welcome Lead Republic’s talented team on board and are pleased to note that the previous owners will continue to be involved in the business for the next 12 months to ensure a smooth handover and accelerate our expansion in new markets ”.
Raketech has acquired the assets, including all employees, in Lead Republic Ltd today, March 11, 2020, for an initial cash purchase price of EUR 1.4 million, with the possibility of additional purchase price based on certain agreed performance targets. Part of the additional purchase price is limited to a maximum of EUR 0.3 million until February 28, 2021, and part is non-restricted and based on future performance until February 28, 2022. The acquired business will be an integral part of Raketech from and March 11, 2020. The initial purchase price will be paid from Raketech’s existing cash register.