Digital sports media company Playmaker Capital is expanding its affiliate capabilities with the acquisition of Wedge Traffic.
Playmaker is acquiring the Glasgow, Scotland-based gambling affiliate for US$31.2m, comprised of a cash payment of $8.5m on closing and 3,694,933 Playmaker shares at a piece of $0.75 per share.
The total price includes a contingent consideration of approximately $20.7m based on certain revenue and EBITDA targets in each of the 12-month periods ending December 31, 2023 and 2024.
“We have been very clear that creating a centre of excellence in affiliate was key to rounding out our offering as a leading sports media business,” said Jordan Gnat, Playmaker CEO. “We look to super-serve all of our partners, and Wedge allows us to better serve critical customer segments, sports betting and iGaming operators.
“The team at Wedge is superb and we could not be happier having them join our family. Dan, David, Ryan and their team have worked together for years and they have quickly built relationships within Playmaker over the past few months. This gives us great confidence that we can win together, leveraging the assets and expertise already present in our Playmaker ecosystem.”
Wedge is currently active in 16 US states and in the province of Ontario, Canada, with 15 online sportsbooks and casinos. The company generated revenue of $5.5m in the twelve months ended June 30, 2022, with EBITDA of $3.1m.
“Outside of the fact that Playmaker’s diverse portfolio of brands will directly complement our business, there were two key reasons for making the decision to join the Playmaker family,” said Dan Kersh, CEO of Wedge.
“Firstly, they understand how to support and accelerate data driven marketing within the iGaming sector. Secondly, and perhaps of even greater importance, they appreciate the value of creating a winning culture and how it must be considered the heartbeat of any successful business.”