GAMBLING.COM GROUP AGREES TO ACQUIRE ROTOWIRE TO ACCELERATE EXPANSION IN THE USA
Charlotte, North Carolina - Gambling.com Group Limited (Nasdaq: GAMB) ("Gambling.com Group" or the "Group"), a leading provider of player engagement services to the regulated global online gambling industry, today announced that it has entered into a definitive agreement to acquire Roto Sports, Inc. ("Roto Sports"), operator of RotoWire.com ("RotoWire"), a popular provider of expert fantasy sports news and recommendations. The deal is expected to close in early January 2022 and is subject to customary closing conditions.
The acquisition of RotoWire will immediately expand Gambling.com Group's presence in the US and is expected to result in immediate revenue growth in fiscal 2022. The Group will leverage RotoWire's existing audience, content library, talented workforce, media partnerships and the trust of US sports fans to further accelerate the Group's already fast-growing business in the US online sports betting market. Gambling.com Group believes that RotoWire's popular digital assets, combined with the Group's digital expertise and technology platform, will bring significant additional revenue to partners in the rapidly expanding sports betting environment.
Highlights of the deal :
- Attractive financial profile : The aggregate purchase price is US$27.5 million, of which US$7.5 million is deferred for a two-year period after closing. The aggregate purchase price is expected to be about four times the estimated revenue of Roto Sports in 2021.
- The dominant player in US fantasy sports : RotoWire had more than 100,000 paid subscriptions and more than 17 million unique web visitors in the past 12 months. Its content reaches millions of additional sports fans through distribution agreements with some of the largest sports media organisations in the US.
- Authority as a leader in online sports betting in the US: RotoWire's quarter-century of experience as a leading authority on fantasy sports gives it the ability to make sports betting recommendations that American consumers will trust. And the waters Swedish consumers are more likely to use casino without Spelpaus
"Over the past 25 years, Peter and the RotoWire team have produced some of the best fantasy sports coverage in America and, in turn, have embedded their business in the heart of American sports," said Charles Gillespie, CEO of Gambling. com Group. "Commercially, the RotoWire business has three different revenue streams, each generating over $1 million per year, giving it significant reach to sports media organisations as well as advertisers and individual sports fans. These deep and long-standing customer relationships are the ideal platform to capitalise on the new era of American sports - the era of betting and gaming."
Peter Schenke, president of RotoWire and former chairman of the Fantasy Sports and Gaming Association, added: "The United States is entering a whole new world of sports fans, and joining forces with Gambling.com Group will accelerate RotoWire's growth. Gambling.com Group's resources and expertise will help RotoWire rapidly advance its sports betting offerings to take full advantage of this new era."
Terms of the deal
The aggregate purchase price is $27.5 million. The Group will pay US$20.0 million at closing, including US$15.0 million in cash and US$5.0 million in newly issued unregistered ordinary shares valued at the preceding 10 trading days weighted average price. The Group will pay US$2.5 million and US$5.0 million on the first and second anniversary of the closing dates respectively, neither of which is subject to RotoWire's financial performance. The group has the option to elect to pay up to 50% of each deferred amount in unregistered ordinary shares.
Group call
Gambling.com Group management will hold a conference call and webcast to discuss the transaction as well as provide updates on other recent asset acquisitions.
About Gambling.com Group
Gambling.com Group Limited (Nasdaq: GAMB) is an award-winning performance marketing company and leading digital marketing services provider operating exclusively in the online gambling industry. The Group operates from offices in Ireland, the US and Malta. Through its own technology platform, the Group publishes a portfolio of leading brand websites including Gambling.com and Bookies.com. Established in 2006, the Group owns and operates more than 30 websites in six languages across 13 national markets, covering all aspects of the online gambling industry, including iGaming and sports betting.
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