Raketech Plc will purchase the assets of US sports tipster group ATS Consultants for the agreed purchase price is $15.5 million. The deal will see Raketech expand its North American publishing portfolio to include the tipster communities of Pickpapa.com, Statsalt.com and Winnersandwhiners.com.
Raketech Wades Deeper into the US Sports Betting Market
Raketech, coming off strong growth this year, has confirmed its latest US transaction. It will pay an upfront $12 million and distribute an additional $1 million over the six-month period following deal closure. The balance of the fees will be paid by Raketech through the issuance and purchase of Raketech shares worth $2.5 million. Additional earnout payments will be made based on performance measures for 36 months.
The transaction is valued as a multiple of 6x EBITDA and 2.5x revenue for the 12-month period. Raketech expects North American revenue to exceed 20% of its total in Q1 2022.
Big Room for Growth in the US
The company underlined the importance of its latest agreement, which will see 20 new employees joining its publishing network to cover US sports. Oskar Muhlbach, Raketech CEO, said that the market was of special interest because it is expected to grow substantially in the next year. He asserted that adding Raketech’s commercials, as well as operational capability, to the assets acquired is a great way of maximizing this opportunity.
Muhlbach continued, “I am also excited to have the talented ATS team on board, and I am looking forward to combining our commercial models and to share technology and know-how between us. Furthermore, as Raketech already offers sports insights and betting tips in the US, there are obvious opportunities to cross-promote and collaborate across our ecosystem of assets to provide even better service to the end user as well as even better marketing opportunities for our clients, the operators.”
Raketech’s North American sports portfolio has been growing since Picksandparlays.net, the main website of P&P Vegas, was acquired by the company this summer. That purchase was made soon after Raketech had reported revenue of $9.57 million for the first quarter of the year, a year-on-year gain of 26.6%. Profit, however, remained stagnated as the company continued to expand its operating portfolio.
The acquisition adds to Raketech’s other recent US purchases, including QM Media AB for $18.5 million. It also announced its acquisition of Spain-based organic casino affiliation marketing company Infinileads, as well as the latter’s Slotjava.es and Slotjava.it assets.
The ATS Consultants acquisition will close by December 15, settled with Raketech’s current credit facility guaranteed by Avida Finance.