Better Collective is expanding its footprint in the United Kingdom with the acquisition of sports betting affiliate AceOdds.
Better Collective has completed the €42 million acquisition on a net cash-/debt free basis, which will be financed by €40 million in cash and the remainder in Better Collective shares.
Better Collective will initiate a share buy-back programme for this latter part to be settled in shares.
The purchase price implies a previous 12 month EBITDA multiple of 4x.
“I am thrilled to announce the addition of AceOdds to the Better Collective group,” said Better Collective senior director UK & Ireland Ian Bowden. “This strategic acquisition brings us a robust owned and operated sports betting media brand in the UK market, poised for global scalability.
“Aligned perfectly with Better Collective’s overarching strategy of acquiring leading sports media brands across various niches, the AceOdds brand fills a crucial gap by offering a vital sports betting affiliation brand in a pivotal growth market for the Better Collective group, along with an app benefiting from hundreds of thousands installs to further increase the reach we can provide our partners”.
Over the past 12 months, AceOdds has achieved operational earnings (EBIT) of approximately €10 million.
Looking ahead, Better Collective aims to reinvest a portion of this profitability into the product and user-experience, which will moderately reduce future profitability for the asset in the short to mid-term.
Following the acquisition, Better Collective has upgraded its 2024 guidance and now expects revenue of between €395 million and €425 million, up from its previous guidance of between €390 million and $420 million.
Shares in Better Collective A/S (STO:BETCO) were trading 4.87 per cent higher at SEK301.50 per share in Stockholm Monday morning.