Performance marketing and lead generation specialist Catena Media is to acquire the UK-based pay-per-click (PPC) marketing business Right Casino Media as it looks to improve its capabilities and expand into new disciplines.
Catena will acquire the business for a maximum consideration of $9m, of which $3m is to be paid upon closing. It will then pay an annual sum based on Right Casino’s financial performance over the coming two years, capped at $6m in total. The deal is scheduled to be finalised by November 1st.
A specialist in PPC marketing, Right Casino will allow Catena to offer its clients a new service, further strengthening its product offering.
“The acquisition of Right Casino Media will add a new category to our product offering since it is active in the attractive PPC area,” Catena chief executive Robert Andersson said. “The company and its founder have extensive expertise in PPC, which will contribute many positive values to Catena Media.”
Right Casino has performed strongly in 2015, generating €892,000 in sales over the first three quarters of the year, with a gross margin of around 55 per cent. It currently maintains offices in the UK and France, with Catena taking over the UK base and its ten staff.
“Catena Media’s vision and ambition to drive development in lead generation in the iGaming industry is attractive to us,” Right Casino Media founder David Merry commented. “To be under their umbrella entails access to an infrastructure that will strengthen our position in the UK market, and also provide us with the opportunities to enter highly interesting growth markets.
The acquisition is expected to immediately contribute to Catena’s full-year profits for 2015, and is described as being in line with the company’s growth strategy. It has recently completed the purchase of two smaller networks, Finland’s Gambling Metropolis and La Luna Marketing in the Netherlands, as it looks to strengthen its business.
“The acquisitions will strengthen our position in three important markets. We are working continuously to confirm our leading position in existing markets and to take the step into new ones. These acquisitions mean further advancement toward our vision of becoming the world’s number one provider of high-value iGaming leads,” Andersson concluded.