Sports betting media group Better group Further agreed to acquire 100% stake in New York-based sports content company, further clarifying focus on the United States Action Network Co., Ltd. $ 240 million on a cash and debt-free basis.
The action network will be integrated into Better Collective US, but will continue to operate as a separate business unit from the current brand. Management and employees led by the CEO Patrick KeaneReport to Group Management through US CEO Mark Pedersen..
In a statement, Better Collective claimed that the acquisition would gain “clear market leadership in sports betting media and US partnerships.” In addition, we expect US revenue to exceed $ 100 million by 2022.
Launched in 2018, Action Network serves as a destination for premium sports content and products for US sports bettors. A trusted source of information for sports enthusiasts, its media platform provides users with an enhanced experience through original sports news content, premium insights, a rich menu of odds, and unique betting tools and data.
The company’s diverse revenue models include a fast-growing affiliate marketing business focused on customer acquisition for US gambling companies and subscription products anchored by Action Pro, Action Labs and Fantasy Labs. I will.
Action continues to benefit from the expanding legitimate sports betting market in the United States. By 2021, the company is expected to generate revenues close to $ 40 million, an increase of more than 100% year-on-year, while generating positive operating profit in 2021.
Also, as more states legalize online sports betting, there is greater potential for further deepening and expanding commercial partnerships with large US-based sportsbooks such as BetMGM, DraftKings, FanDuel, and PointsBet. I will.
Looking at the financial components of the transaction, Better Collective has a $ 240 million purchase price settled in cash and $ 12 million to Action executives, key employees, and certain other individuals. We have confirmed that a new Better Collective share will be issued. $ 10 million in cash payments will be paid on a deferred basis as a settlement for certain existing stock options in action.
Jesper Søgaard, Better Collective CEO said: The acquisition is the largest in the history of Better Collective, establishing a leading position in the US alliance and providing a strong foundation to benefit from the continued regulation of the US gambling market.
“We have added three new and very well-positioned US sports media brands to our portfolio and welcomed about 100 new colleagues. Together, they are valuable on the US sports betting media market. Represents a pool of knowledge and expertise. For all accounts, this is a great day for Better Collective. “
Keane, CEO of Action Networks, commented: In just a few years, our team has successfully built a major sports betting product and media business in the US market, making it attractive to major international players. I am excited about this result for employees and investors and look forward to continuing to build great relationships with league, media and sportsbook partners.
“Under the ownership of Better Collective, we have years of experience and everything we need to further enhance our position and develop our offerings to ultimately enhance the betting and entertainment experience of sports fans. We will be part of a resource-rich company. We will gain new colleagues, career paths and perspectives. We are very much looking forward to our future journey. “
With the acquisition, Better Collective has updated its 2021 financial target and forecasts the Group’s total revenue to exceed $ 216 million, compared to its initial forecast of $ 192 million. Operating income has also been revised upward from the expected $ 60 million to $ 66 million.
With the acquisition of Action, Better Collective’s estimated debt leverage will exceed its financial target of <3.0. Due to the company's strong operating cash flow, the board has determined that for the time being it is acceptable for the company's debt leverage to exceed its financial target of 3.0, which is maintained until 2021.
Better Collective Agrees to Acquire Action Network for $ 240 Million, Accelerating US Media Drive
Source link Better Collective Agrees to Acquire Action Network for $ 240 Million, Accelerating US Media Drive