Better Collective nets popular FIFA Ultimate Team content site Futbin in €105m deal
FIFA Ultimate Team, commonly known as FUT, allows users to build and compete with their dream squads by buying and selling players in-game or by making in-game purchases to acquire player packs – the contents of which are randomly generated. These are also known as loot boxes.
Exactly €70m of the purchase price will be paid upfront in cash, while shares in Better Collective will be paid at a market value of €5m.
The remaining €30m will come from separate earn out payments to be paid over the next two years, subject to certain performance criteria being met.
The site will be added to Better Collective’s esports portfolio, which will reach approximately 100 million monthly visits when Futbin is fully integrated.
For example, the Futbin website alone attracts 50 million monthly visits, while its proprietary app plays host to three million daily active users.
The transaction will also diversify the firm’s income streams, as Futbin primarily generates revenue from advertising sales and subscription services.
During the last 12 months, Futbin generated €13m in revenue, growing with a CAGR of 55% from 2019 to 2021, according to Better Collective.
The existing Futbin team will continue to assist the business to ensure strong development of the platform, said Better Collective, which has also pledged to invest in the asset.
New Nkunku Bundesliga POTM SBC🔥— FUTBIN (@FUTBIN) April 14, 2022
This is the 3rd time this year Nkunku has gotten the award👏 pic.twitter.com/gdC9I1nLrl
In connection with the acquisition, Better Collective has upgraded its EBITDA target for full-year 2022 by approximately €5m to €85m.
This forecast includes eight months of operational income from Futbin after accounting for the expected added costs associated with further developing the business.
Better Collective CEO Jesper Søgaard said: “Esports is maturing and attracting more and more people globally and also professional athletes.
“Acquiring Futbin and related assets is a clear testament to Better Collective’s ambition of creating a platform that reaches esports audiences across the world.
“And even though more than 100 million people visit our esports platforms every month, we will continue to look for additional growth.
“We expect to see significant positive synergistic effects with Better Collective’s business going forward,” he added.
Futbin will be added to Better Collective’s esports asset portfolio alongside hltv.org, the leading online community for the popular CS:GO first-person shooter series.