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Better Collective has acquired Skycon Limited, a global display advertising company in a deal worth up to £45m.

The purchase is expected to enhance Better Collective’s Paid Media division and the affiliate has boosted its 2023 financial targets as a result.

Based in Newcastle-under-Lyme, England, Skycon Limited was founded in 2017 and specialises in display advertising and paid advertising on sports media channels.

Better Collective said the acquired business would complement its existing search engine-based approach to marketing, providing synergies for both businesses.

Skycon will now be integrated into Better Collective’s existing Paid Media operations, with the company taking over Skycon’s recurring rev share database.

It has been consolidated into the Better Collective business from 14 April 2023.

The move is expected to fuel further growth at Skycon, which has solely worked with one sportsbook to date.

Better Collective is planning to utilise its existing partner network of sportsbooks and its forthcoming AdTech platform to expand Skycon services, as well as branching out the business into new geographies such as the US.

Better Collective CEO Jesper Søgaard: “Skycon is a great business, which is built on Better Collective’s favoured rev share model.”

Jesper Søgaard, co-founder and CEO of Better Collective, said: “Acquiring Skycon will be highly synergistic to this journey.

“Skycon is a great business, which is built on Better Collective’s favoured rev share model. It is a perfect fit as we can leverage our leading skill set within media buying to grow Skycon’s revenues,” he added.

The acquisition will see Better Collective pay up to £45m on a cash and debt-free basis, comprising a £25m upfront cash payment and up to £20m in performance-related earn-outs.

The deal will be funded by cash, with the earn-out estimated to be at least 50% financed by Better Collective’s existing rev share database.

Following the acquisition, Better Collective has upgraded its financial targets for this year, guiding to revenue of between €305m and €315m compared to previous guidance between €290m and €300m.

EBITDA before special items has also been upgraded by €5m, while net debt remains unchanged.

Better Collective has now acquired 29 companies since going public back in 2018.

In March, before the Skycon deal was announced, the Stockholm-listed affiliate promised to alter its M&A strategy in order to evolve from a sports betting affiliate into a “leading digital sports media group”.

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