Better Collective has acquired the assets of sports betting affiliate Canada Sports Betting for a maximum purchase price of €21.4m.
The price consists of a €15.9m upfront cash payment, with a further €5.5m payable as a deferred cash payment contingent on certain deliverables to be achieved within three months.
Better Collective recently expanded its credit line with Nordea Bank by €100m, which will be used to finance the purchase as well as further acquisitions.
The deal was sealed less than two weeks before the launch of legalised online sports betting and iGaming in Ontario, Canada’s largest province by population with close to 15 million residents.
Better Collective said that it expects Canadian activities to drive in excess of €5m in revenue during the financial year 2022.
Canada Sports Betting helps guide customers to online sports betting operators and has become an established brand within the Canadian market since launching.
Better Collective said it has developed its US business successfully following the execution of its acquisition strategy and ongoing investment in North American sports betting markets, with the strategy generating high growth and a rapid increase in profitability for the business.
Other major Better Collective brands, in particular Action Network and VegasInsider, will drive its North American performance alongside Canada Sports Betting.
Better Collective is preparing for the opening of online sports betting in Ontario.https://t.co/WiUg6mb1JT pic.twitter.com/HmAnB8x4yG
— Better Collective (@BetterCollectiv) March 23, 2022
In line with these developments, Better Collective said it expects the North American market to continue to grow, bringing increased revenue and EBTIDA to the business.
Last month, Better Collective’s Q4 and full-year 2021 financial results showed the US market had provided 40% of the firm’s revenue in the fourth quarter, generating €20m during the period.
For the full year 2022, the affiliate said the US market is expected to provide annual revenue in excess of $100m.
“I am very happy to include Canada Sports Betting in the Better Collective product portfolio,” said Better Collective CEO Jesper Søgaard. “This acquisition gives us a strong foothold in a Canadian market, which is developing in a very promising direction.
“With these new websites and with support from our established North American business, I believe we can develop these assets to become flagship brands within sports betting in Canada.”
In line with the acquisition, Better Collective has updated its financial targets for the financial year, with EBITDA expected to reach approximately €80m, adjusted upwards from previous projections of €75m.
The firm’s other financial targets relating to organic growth and debt leverage, however, remain unchanged.
Competition is expected to be fierce in Ontario’s legalised online gaming market upon launch on 4 April, with several major international operators including 888, bet365, Unibet and LeoVegas, as well as the biggest players in the US market such as FanDuel and DraftKings, approved to go live at market launch by the Alcohol and Gaming Commission of Ontario.
Better Collective’s share price has increased by 1.7% today and sits at SEK155 at the time of writing.