Catena Media plc has announced their acquisition of the US Betting Affiliate Lineups.com, acquiring 100% of the fore-mentioned company and assets.
Lineups.com is an online sports affiliation company specialising in tools, analytics and data to predict outcomes of games and they specialise in the US Betting Sphere. Their tools provide projected starting lineups for NBA, MLB, NHL and for fantasy sports. Lineups.com recorded sales of around USD 7.5 million in the last 12 months to 30th April 2021. Calculated for the first quarter of 2021, the company’s sales corresponded to roughly 10 percent of Catena Media’s total revenue. As a sports-focused affiliation product, its sales can be expected to fluctuate significantly with the US sports betting calendar.
The price represents a total cash payment of USD 39.6 million, to be payable in three instalments: USD 25 million on closing, USD 9.6 million on the first anniversary and a USD 5 million on the second anniversary of the closing date. In addition, a cash payment of USD 0.5 million will be due if the state of new York allows sports betting within three years of closing date and certain revenue thresholds are met.
The acqusition will have a direct positive effect on Catena Media’s EBITDA as of the consolidation date on 4 May 2021.
Michael Daly, Catena Media CEO said, “The acquisition of Lineups.com strengthens Catena Media’s leading position in the growing US betting market with a complementary product that fits perfectly into our existing US portfolio. It gives us a second, even stronger, national sports betting affiliation site, alongside thelines.com. This will allow us to capture more market share across North America, as well as to take advantage of shared tools across multiple Catena Media sites. Sam Shefrin, founder of Lineups.com, will bring his industry and technology focus to the Catena Media team and will work with us for the near future as an exclusive consultant to the business.”