Gambling.com Group strikes $27.5m deal to acquire US sports betting and DFS portal RotoWire
Gambling.com Group has strengthened its US sports betting position with the $27.5m purchase of Roto Sports and its flagship DFS news brand RotoWire.
The acquisition is expected to close in January 2022, at which time the affiliate will pay out an initial $20m, consisting of $15m in cash and $5m in newly issued shares.
Gambling.com Group will then pay $2.5m and $5m on the first and second anniversaries of the closing, respectively.
These earnouts are not dependent on the financial performance of RotoWire, although Gambling.com Group can pay up to 50% of each of the deferred amounts in shares.
The overall purchase price is expected to be approximately four times (4x) Roto Sports’ estimated full-year revenue for 2021.
Gambling.com Group said it plans to leverage RotoWire’s existing audience, content library, workforce, media partnerships and trust with US sports fans to accelerate its US strategy.
RotoWire is a subscription based DFS content portal that boasts more than 100,000 paid subscribers and unique web visitors in excess of 17 million over the last 12 months.
— Peter Schoenke (@PeterSchoenke) December 13, 2021
Gambling.com Group CEO Charles Gillespie said the acquired business would boost the affiliate’s fiscal 2022 earnings and drive both near-term and long-term value for shareholders.
“Over the past 25 years, the RotoWire team have produced some of the best fantasy sports content in America and have in turn embedded their business into the heart of the American sports experience,” said Gillespie.
“Commercially, the RotoWire business has three different revenue streams, each generating over $1m per year, which give it significant reach into sports media organisations, as well as with advertisers and individual sports fans.
“These deep and long-lasting customer relationships are an ideal platform from which to capitalise on the new era of American sports – the betting and gaming era,” he added.
RotoWire is led by president Peter Schoenke, who is a former chairman of the Fantasy Sports & Gaming Association.
Gambling.com Group’s share price dropped 5% yesterday (13 December) to a three-month low of $9.57 per share, although the Roto Sports acquisition was announced just 15 minutes before the close of trading for the day.