Stockholm-listed online gaming affiliate Catena Media has agreed to sell its UK and Australian online sports betting brands to UK-based Moneta Communications for €6.0 million.
The transaction is expected to close in the third quarter of this year, and covers all assets in Catena Media’s UK business, which includes sports betting brands Squawka and GG.co.uk, as well as its wholly owned Australian subsidiary.
Both businesses generated a combined revenue in the 12 months to date of €4.5 million and EBITDA of €0.9 million.
The sale will enable Catena Media to refocus its business on the North American market following a strategic review last May.
“This agreement is another milestone on our journey to focus the business on the North American online sportsbook and casino affiliation market,” said Catena Media CEO Michael Daly. “The strategic review has led us to reshape our brand portfolio to reflect this closer operational focus, and I am pleased to be delivering further progress in that direction.
“I am also delighted that we have found a buyer that is well placed to build on the success of our UK and Australian sports and casino brands and will offer them the scope and support they need to develop and grow.”
Of the total purchase price, €5.8 million will be paid in cash on closing and €0.2 million will be paid within 75 days of completion, with the sale proceeds to be used primarily to repay debt.
Following an impairment charge of €15.2 million arising from the sale, the divested businesses’ intangible assets had a net book value of €6.0 million on 30 June.
The sale will reduce Catena Media’s cost base by €2.8 million on an annually, which will be realised directly on closing.
“We are happy to have acquired these established and successful brands from Catena Media,” said Moneta Communications CEO Christopher Russel. “This acquisition allows Moneta Communications, as part of the OneTwenty Group to further our plan to acquire fan focused, profitable digital media assets that cover major sports in important markets. We are excited to further develop and grow the assets and the team.”
Shares in Catena Media plc (STO:CTM) were trading 2.16 per cent higher at SEK24.62 per share in Stockholm earlier Friday.