Stockholm-listed industry affiliate marketing network Catena Media continues its M&A expansion confirming that it has agreed to acquire German focused sports affiliate Baybets Ltd.
Updating the market, Catena governance informs that it has agreed an initial payment of €26.5 million to takeover Baybets’ 50 website portfolio. Furthermore, its acquisition deal will have an attachment of a further €65 million in ‘earn-out payments’ based on the performance of acquired assets over an initial 24-month period.
The Baybets acquisition forms part of Catena’s European market expansion, with the company significantly increasing its services and coverage within the German sports betting market.
Henrik Persson Ekdahl, Acting CEO, Catena Media commented on the acquisition: “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”,
Further to its update, Catena informs that Baybets properties are expected to contribute quarterly sales of approximately €2.25 million with an operating margin of approximately 70%.
Expanding its German market provisions, Catena will absorb Baybets’ 23-employee team which will be integrated within Catena’s sports betting division based in Malta.
Updating stakeholders, Jan Steffen, CEO, Baybets stated “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 about all the upcoming opportunities that await”
Catena will move to complete the deal by mid-December 2017, in accordance with Nasdaq Stockholm transaction arrangements.