Catena media strengthened its position in the US sports betting market through the acquisition of an online subsidiary. Compositions, a firm specializing in analytics, rate prediction and tools.
The total purchase price was $ 39.6 million and will be paid in cash in three installments over a two-year period: $ 25 million to be paid at closing, $ 9.6 million on the first anniversary, and the last $ 5 million on the second closing anniversary. Date.
The additional contingent cash payment of $ 0.5 million is payable if certain requirements are met within three years from the date of the transaction.
A key warning will be whether New York State allows sports betting for three years from the closing date, while also meeting certain income thresholds. There are no material conditions for closing the deal.
“The Lineups.com acquisition strengthens Catena Media’s leadership position in the burgeoning US betting market with a complementary product that fits perfectly into our existing US portfolio,” said Michael Daly, CEO of Catena Media.
Lineups.com currently provides confirmed and predictable starting lineups and lineups for NFL, NBA, MLB and NHL matches, as well as other American sports leagues and fantasy sports.
With a presence in most regulated US states, the website offers players and players and teams information on injuries, news, results and trends.
In the last 12 months ended April 30, 2021, the company recorded sales of approximately £ 7.5 million, with sales in the first quarter of 2021 accounting for approximately 10% of Catena Media’s total revenue.
Catena expects Lineups sales to fluctuate significantly across the US sports betting calendar as it operates as a sports-focused product, but also said the acquisition will “have a direct positive impact” on Catena Media’s EBITDA since consolidation date 4 May 2021.
Stockholm-based Catena has announced an “exceptionally strong” start in 2021 in its Trading report for the 1st quarter Earlier this month, revenues are expected to exceed € 40 million, while EBITDA is up 85–94%.
Daily added: “This gives us a second, even more powerful sports betting site alongside thelines.com. This will enable us to capture a larger market share in North America, as well as take advantage of shared tools across multiple Catena Media sites.
“Sam Shefrin, the seller and founder of Lineups.com, will share his line of business and technology with the Catena Media team and will work with us as an exclusive business consultant in the near future. ”