Maltese affiliate network Catena Media have announced a deal to acquire German sports affiliate provider Baybets Ltd, for €26.5m.
Under the terms of the deal Catena will pay a total consideration of €26.5m, of which €13.25m will be paid with newly-issued shares in Catena Media while the remainder will be paid in cash.
The acquisition deal also includes a further earn out agreement based on the performance of the purchased assets over a 24-month period, potentially adding a further €65m to the acquisition cost.
Baybets is expected to generate quarterly sales of approximately €2.25m with an operating margin of approximately 70%. Catena Media have confirmed that the company's 23 staff will be integrated into Catena’s existing sports betting division.
In a statement announcing the acquisition, Henrik Persson Ekdahl, Acting CEO of Catena Media, said: “We are proud to announce the largest acquisition made by Catena Media since company inception, making us one of the strongest sports betting affiliate players on the market.
“We have set ambitious financial targets for the company, and the acquisition is fully in line with those targets. We are excited about being able to complete this deal, given the upcoming sports year of 2018, which will have both the Winter Olympics and the World Cup.”
Baybets’ business model is centred on the German-speaking DACH markets, and its 50-strong affiliate website portfolio includes sites such as sportwetten.org and sportwette.net.
Commenting on the acquisition. Jan Steffen, CEO of Baybets added: “I would like to thank all the people that have been involved in the company’s journey so far, bringing us to where we are today.
“We now look forward reaching new heights together with Catena Media on a long-term basis, both from an operational perspective and as shareholders. We are excited for all the upcoming opportunities that await.”