Acroud acquires 60% of affiliate business with option to purchase remaining shares in 2028
Swedish affiliate and Software as a Service (SaaS) company Acroud AB continues to diversify its affiliate business and has purchased 60% of an unnamed affiliation and media company for £5.1m.
The acquisition comprises affiliation assets and technology within the iGaming market and is expected to contribute more than €9m to the company’s revenue and over €4m to Acroud’s EBITDA annually.
While the partially acquired business has not been identified, iGaming NEXT understands that the company in question has been operating in the affiliate space for a number of years. The business unit, in which Acroud has invested, has been rebranded to Acroud Media.
Acroud said the deal will support its expansion into the sports betting space, adding recurring sportsbook revenue “from some of the world’s most prominent sportsbook providers”, of which 80-85% comes from historic revenue share agreements.
Acroud CEO and president Robert Andersson: “This acquisition is another piece of our puzzle to establish Acroud as a diverse player in the advertisement and affiliation space based on intelligent solutions.”
Additionally, Acroud highlighted that the transaction will guarantee the delivery of a high number of new depositing customers (NDCs), which are expected to more than double the group’s current NDC intake numbers.
Robert Andersson, president and CEO of Acroud, commented: “This acquisition is another piece of our puzzle to establish Acroud as a diverse player in the advertisement and affiliation space based on intelligent solutions.
“It will blend very well into our existing product portfolio, and with the new bond in place, the company is entering a new period of growth,” he added.
Under the terms of the agreement, Acroud will invest £1m in shares and £4.1m in cash, payable over the course of 18 months.
The cash payment is expected to be financed via Acroud’s existing cash and future operational cash inflow.
Acroud also has a call option to acquire the remaining 40% of the business in 2028.
The call option is based on financial performance for 12 months ending 30 September 2028 with an EBITDA multiple of 5.5x.
If the call option is exercised, the acquisition will be settled in cash from existing reserves (40%) and via own shares (60%).
Acroud has offices in Malta, Denmark, the UK and Sweden and has been listed on the Nasdaq First North Growth Market since June 2018.