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Raketech expands sports portfolio with P&P Vegas and QM Media acquisitions

12th July 2021 6:30 am GMT

Stockholm-listed iGaming affiliate Raketech has strengthened its sports portfolio with the acquisitions of P&P Vegas Group and QM Media.

Raketech will pay €16m to acquire the businesses, which will be settled by €9m in cash and issuance of 3,881,968 new Raketech shares. The purchase price is said to represent a multiple of approximately 5.6x EBITDA and 3.8x revenue for the last twelve months.

Ohio-based P&P Vegas owns US betting tipster community Picksandparlays.net, which has been in operation for the past decade and attracts around 500,000 unique monthly users, while QM Media owns leading Indian cricket betting site Onlinecricketbetting.net.

In addition to the cricket assets, a portfolio of sports assets targeting the Nordics is also included as part of the acquisition.

“With these acquisitions we are delivering on several strategically important goals,” said Raketech CEO Oskar Mühlbach. “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 as 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.”

As a result of the acquisitions, Raketech’s revenue from the US is expected to double, while revenue generated in India is expected to reach 5-10 per cent of the group’s total by the final quarter of this year. In addition, sports betting is expected to account for 30 per cent of Raketech’s revenue in Q4.

“By partnering with Raketech we gain access to their well-established infrastructure that will help leverage our strong brands and market positions,” said QM Media CEO Marcus Egstam. “We are enthusiastic to become shareholders in Raketech and to be a part of the exciting future we have planned.”

The acquisitions are expected to be completed in September.

In related news, Raketech has secured a one-year €15m revolving credit with Avida Finans, which will enable the company to continue to grow through strategic acquisitions. The facility will replace the existing €10m credit facility with Swedbank, the company said.

“We are delighted to enter into this new relationship with Avida Finans and take advantage of the strong debt markets to strengthen our financial flexibility," continued Mühlbach. "The new agreement offers beneficial terms and enables us to keep a high pace in our M&A activities to propel our group growth on strategically important markets."

Shares in Raketech Group Holding plc (STO:RAKE) closed 4.99 per cent higher at SEK20.60 per share in Stockholm Friday.

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