Raketech enters US market with American Gambler acquisition9th November 2020 10:55 am GMT
Stockholm-listed iGaming affiliate Raketech has entered the United States with the acquisition of sports betting affiliate Americangambler.com for €5m.
The agreed purchase price represents a multiple of approximately 3.9x EBITDA and 3.5x revenue, based on current run rate, with the acquisition expected to contribute between 5 and 10 per cent of Raketech’s total revenue beginning in the final quarter of 2020.
“The acquisition of American Gambler is an important strategic move for us, shifting the US from a strategic target to a strategic market,” said Raketech CEO Oskar Mühlbach. “And by expanding the American Gambler’s service offering to more and more states with the support from our strong core operations team and technology platform, I foresee great opportunities for growth.”
American Gambler founder Alexander Kostin commented: “To join forces with a larger professional player with a proven track record is the best choice for American Gambler, an already strong product on the US market.
“With this partnership American Gambler have secured both financial muscles and a strong infrastructure in order to become one of the leading brands on the US market. I am happy that Raketech identified the potential in American Gambler and gave a helping hand to realize its full potential for years to come.”
Raketech has also announced the sale of its consumer finance assets ROI Media UK for a total consideration of €4.2m
The divestment is in line with Raketech’s strategy of focussing on iGaming, with the sale price representing a multiple of approximately 4.3x EBITDA and 3.5x revenue, based on the last twelve months. Raketech had acquired the assets in February 2017 for €3.6m, more than doubling its initial investment, including cash contribution from operations.
“The divestment of the consumer finance assets is an important and natural step for us to ensure sharp focus on iGaming,” said Mühlbach. “Furthermore it gives us additional ammunition for growth through M&A - where we see high potential - on strategic markets such as the US.
“In only a few years we have managed to grow our Finance assets into one of the key portfolios within its niche, on the Scandinavian market, but I am confident that ROI - with its dedication to the financial affiliation market - is the right partner to take the assets to the next level.”
Shares in Raketech Group Holding plc (STO:RAKE) were unchanged at SEK12.25 per share in Stockholm Monday morning.