The iGaming performance marketing partner announced last week (7th July) a sports-focused acquisition, delivering growth on strategically important markets such as the US.
Raketech, the Malta-based iGaming performance marketing company expands its sports portfolio with P&P Vegas and QM Media acquisitions. With this acquisition, Raketech’s place in the US market is set to grow, with it now owning the betting tips platform Picksandparlays.net. The company also acquires all assets from QM Media AB, including the leading cricket betting website; Onlinecricketbetting.net with the majority of its traffic from India. The total purchase price amounts to EUR 16m, payable in cash and issuance of new shares as at closing.
According to Raketech, the revenues originating from the US are expected to approximately double and the Indian revenues to reach 5-10 % of the group’s total, already in Q4 of this year and it is sports vertical is expected to reach approximately 30% of the group’s total revenues in Q4 of this year.
The agreed purchase price amounts to EUR 16m on a cash and debt free basis which will be settled in a cash payment of EUR 9m and an issuance of 3,881,968 new Raketech (RAKE) shares amounting to EUR 7m. The number of Raketech shares issued has been determined by the volume-weighted RAKE share price 30 trading days up until 5 July 2021. Further, the issued RAKE shares will be subject to a lock-up of 24 months following completion of the transaction. The purchase price represents a multiple of approximately 5.6x EBITDA and 3.8x revenues for the last twelve months.
Oskar Mühlbach, CEO of Raketech, said: “With these acquisitions, we are delivering on several strategically important goals; significant sports revenues, revenues from high growth markets, boots on the ground in the US, and asset diversification and new revenue streams.
“Furthermore, by adding such a strong brand like PicksandParlays, Raketech will be able to add significant value to the US business through the implementation of the affiliate marketing sales in all licensed states. And with the talented and committed team that comes with the acquisition, I am very much looking forward to having them join forces with our central operations team to accelerate growth even further.” Marcus Egstam, CEO of QM Media added: “By partnering with Raketech we gain access to their well-established infrastructure that will help leverage our strong brands and market positions. We are enthusiastic to become shareholders in Raketech and to be a part of the exciting future we have planned.