Catena Media to acquire Dreamworx Online

Catena Media has agreed a deal to acquire Dreamworx Online, a company active in the sports, casino and financial services markets.

The purchase price amounts to a payment of €9.5m ($11.6m), of which €4m will be paid with newly issued shares in Catena, and the remaining €5.5m in cash.

Catena expects the acquired assets to generate around €600,000 in quarterly sales, with an operating margin of approximately 80%.

Dreamworx operates various sports websites, such as Sportwettenanbieter.com, Fussballwetten.info and financial sites such as DeutscheFXBroker.de.

Catena expects to complete the deal before the end of January.

Henrik Persson Ekdahl, acting chief executive of Catena, said: “The assets of Dreamworx will strengthen our position as the leading affiliate in Germany.

“This will place us in the top position, short-term for the Fifa World Cup 2018 as well as long-term.”

Dreamworx assets will form part of Catena´s sports division and be run by Baybets, which Catena also acquired in December.

As an additional consideration, Baybets may add the increased performance of the Dreamworx assets to existing earn-out calculations, and the maximum earn-out payments to Baybets will be amended.

The maximum amount of the first earn-out payment will now rise from €20m to €23m, while the second earn-out payment will increase from €43.5m to €50.5m.

Up to 40% of the earn-out payment related to the Dreamworx assets can be paid in Catena shares.

As a result, Catena expects total earn-out payment for Baybets, in a “reasonable scenario”, to jump from €30.5m to €39m.

Related article: Catena completes record acquisition of Baybets