Catena Media will sell its UK and Australian online sports betting brands for €6m ($6.57m) to Moneta Communications, a UK-based sports betting affiliate.
The sale of all the assets in Catena Media's UK business, which include the sports betting brands Squawka and GG.co.uk, as well as all the shares in the company's fully owned Australian subsidiary, are covered by the deal, which is expected to complete in Q3 2023.
A total of €5.8m will be paid in cash at closing and the remaining €0.2m will be paid in the following 75 days. Most of the sale's revenues will go towards paying down debt, which will lower the group's leverage ratio.
The intangible assets of the sold firms had a net book value of €6m on 30 June 2023, following an impairment charge of €15.2m due to the sale.
In the past 12 months, the firms have generated combined sales of nearly €4.5m and EBITDA of about €0.9m.
The transaction will, on an annualised basis, lower the group's cost base by an estimated €2.8m.
Michael Daly, Catena Media CEO, said: “This agreement is another milestone on our journey to focus the business on the North American online sportsbook and casino affiliation market.
"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.”
Christopher Russel, Moneta Communications CEO, said: “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.”
Daly recently spoke about Catena and its financial objectives on the GI Huddle.
