Stockholm-listed industry affiliate marketing publisher Better Collective AB has moved to significantly expand its US market profile and strategic vision after acquiring a 60% stake in Rical LLC, the operating company of the RotoGrinders network.
The transaction sees Better Collective acquire its majority stake in RotoGrinders for $21 million, with the Stockholm enterprise granted first right to secure the remaining 40% equity in RotoGrinders at an EBITDA multiple of between 5x-to-10x.
Founded in 2009, Nashville (Tennessee) headquartered RotoGrinders operates US sports biggest digital network for betting news and wagering information.
The acquired network includes flagship DFS player portal rotogrinders.com, supported by the high coverage assets of PocketFives.com (Poker), Sportshandle.com, USbets.com and Pennbets.com.
Jesper Søgaard, CEO of Better Collective, said: “Since PASPA was repealed by the US Supreme Court last year, we have carefully evaluated how best to establish Better Collective in the growing US market. We have assessed various acquisition opportunities, searching for access to strong products and dedicated people with insight into this market.
“We strongly believe that we found exactly that in RotoGrinders, where we see a strong and dedicated management team and talented employees. Management and key employees remain shareholders in RotoGrinders for the coming years, in which the US market is expected to unfold, whereby management and key employees on the one side and Better Collective on the other to a large extent share the potential risks and upside. We are truly excited about this opportunity.”
In its update, Better Collective governance states that the company has secured as revenue effective asset (expected revenue of > 10 million USD in 2019) which guarantees Better Collective the highest exposure and coverage as a US wagering publisher.
Detailing further insights, Better Collective maintains that RotoGrinders will remain headquartered in Nashville, with its 50-staff team led by Calvin Spears, CEO and co-founder of RotoGrinders.
Spears said: “Joining the Better Collective group will help us fully realize the potential we’ve created with the RotoGrinders network. Regulated online sports betting will create an enormous affiliate marketing opportunity in the US.
“We feel Better Collective is the perfect partner for us as this opportunity unfolds. The experience, resources, and technology they’ve built up over the past 15 years in European sports betting will prove incredibly valuable here. Our combined goal is to be the largest US sports betting affiliate and we’re in a great position to make it happen.”