The agreement, first announced in July, sees iGaming marketing group Raketech acquire Stockholm-headquartered QM Media’s North American subsidiary, P&P Vegas Group Inc, including flagship betting tips channel PicksandParlays. The acquisition also includes India-facing cricket site OnlineCricketBetting.
The businesses have now signed the final agreements and completed the transaction, with QM Media and P&P Vegas Group together with its employees now operating as an integrated part of Raketech.
Raketech said it has identified several growth and development opportunities for the acquired assets, such as the implementation of Raketech’s technology infrastructure and introduction of affiliate marketing sales in all licensed states in the US.
Oskar Mühlbach, chief executive of Raketech, said: “I’m satisfied that we now formally have closed this important acquisition, the largest to date for Raketech, and to be reinforced with a network of sports betting experts and profitable assets with significant grow potential.
“I am also very happy to welcome our new colleagues, together we will continue to work on our growth strategy – to increase our market share through product diversification, geographical expansion, increased monetisation through R&D as well as M&A, with a specific focus on the US.”
As previously announced, as a result of the acquisition combined with the addition of Infinileads in August 2021, Raketech is expected to add more than €6m in revenue and increased margins with as much as four percentage points on a yearly basis.
The agreed purchase price amounted to €16m on a cash and debt free basis, settled in a cash payment of €9m and the remaining part in shares with a 24-month lock-up period. There is no earn-out. The purchase price represents a multiple of approximately 5.6x EBITDA and 3.8x revenues for the last 12 months.
Speaking in July, Marcus Egstam, chief executive of QM Media, said: “By partnering with Raketech we gain access to their well-established infrastructure that will help leverage our strong brands and market positions. We are enthusiastic to become shareholders in Raketech and to be a part of the exciting future we have planned.”
Last month, Raketech said a 25.8% year-on-year increase in revenue to a record €17.1m in the first half of its 2021 financial year was due to a rise in network sales and the impact of recent acquisitions. Raketech said that this growth was primarily driven by a rise in network sales, as well as “continued strong growth” in Japan and additional revenue through the recently acquired AmericanGambler US-facing affiliate site in November last year.