Better Collective AS stated that it has secured the ‘outright leader’s position’ in US sports betting’s media and affiliate landscape, having reached ‘definitive terms’ to acquire the Action Network.
This Monday, Better Collective announced its biggest M&A transaction to date, acquiring all assets of US sports betting publisher Action Network for $240 million (€198m) on a ‘cash and debt-free basis’.
The Stockholm-listed publisher branded the Action Network buyout as an essential deal, which will accelerate and diversify its US growth strategy adding the revenue effective assets of Action Pro, Action Labs and Fantasy Labs to its US media portfolio.
Better Collective informed that Action Network would be maintained as a separate business unit operating its brands as part of Better Collective US.
Action Network’s day-to-day management will continue to be led by CEO Patrick Keane reporting directly to Better Collective US Chief Executive Marc Pedersen.
As part of the deal, Better Collective has reserved a $12 million new share issuance for key management, employees and stakeholders of Action Network.
“I am thrilled about this outcome for our employees and investors and we look forward to continuing to forge great relationships with our league, media and sportsbook partners,” remarked Keane.
“Under Better Collective’s ownership, we become part of a company with many years of experience and all the resources necessary to further grow our position and develop our offering, to ultimately enhance the betting and entertainment experience for sports fans. We gain new colleagues, career paths and perspectives. I’m looking very much forward to the journey ahead.”
Updating stakeholders, Better Collective emphasised Action Network’s rapid growth trajectory as the company is “expected to achieve revenues approaching $40 million, an increase of over 100% year-on-year, while also generating positive operational earnings in 2021”.
Further deal benefits will see Better Collective amplify its US wagering editorial and technical provisions by securing Action Network’s “original sports news content, premium insights, deep menus of odds and proprietary betting tools and data”.
Better Collective CEO Jesper Søgaard praised Action Network as a young and dynamic company that had become US sports betting ‘most trusted source’ for sports fans in the three years following the federal repeal of PASPA.
“I am thrilled to welcome Action and its employees to Better Collective,” he said. “This acquisition, which is the largest in Better Collective’s history, gives us a leading position within affiliation in the US and a strong foundation for profiting from the continuous regulation of the US betting market.
“We add three new, very well positioned US sports media brands to our portfolio and welcome around 100 new colleagues, together representing an invaluable pool of knowledge and expertise on the US sports betting media market. By all accounts, this is a great day for Better Collective.”
Closing its statement, Better Collective informed that it would consolidate Action Network assets directly into its group-wide financial reporting.
As a result, Better Collective has upgraded its full-year 2021 trading to exceed €180 million (previous +€160m), with full-year group underlying profits projected to exceed €55 million (previous +€50).
Better Collective will provide a prospectus of its Action Network deal as part of its Q1 2021 trading update on 12 May.