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Better Collective buys Playmaker Capital for €176m

| By Dan Kleiner
Better Collective has acquired Playmaker Capital for a total price of €176m (£153m/$188m) with an expected close in Q1 2024.

According to Better Collective, the deal will make it the market leader in South America and “enhance North American leadership”.

In financing the purchase, Better Collective will be using shares for 65% and 35% cash. The affiliate will revisit its financial targets for 2023 to 2027 upon the close of the purchase.

Toronto-based Playmaker Capital has its shares listed on both the TSX Venture Exchange in Canada and the OTCQX in the US. Its sports media brands include Futbolsites.net, Yardbarker and The Nation Network and all assets will be purchased by Better Collective.

Enhanced scale

Better Collective has identified a mutual benefit from enhanced scale and “greater levels of product, technology and marketing investments”. It also expects to grow its sports fan audience in the Americas from the purchase.

Under the terms of the transaction, Playmaker common shareholders will receive a consideration of CA$0.70 per share. Relay Ventures and JPG Investments, the two largest Playmaker shareholders, hold a combined 24% of shares. Both will roll a portion of their Playmaker shares for Better Collective shares. 

This larger shareholder sale will consist of around 75% of Better Collective shares and 25% cash. Both shareholders have signed lock-up agreements preventing sale of their Better Collective shares for a specific period of time.

Transformational deal

According to Jordan Gnat, co-founder and CEO of Playmaker Capital, the sale has been a year in the making.

“Over the past 12 months, I have been talking a lot about a transformational deal for Playmaker and its shareholders that will take this company to the next level,” he said. “Today’s announcement does exactly that and I could not be more excited for the Playmaker family to join the Better Collective family.”

“Their success is undeniable and their vision to become the leading digital sports media group aligns with us exactly,” he continued. “The cultures of our companies are very similar and I see the integration and synergies to be incredibly accretive to shareholders.”

Important milestone

Jesper Søgaard, Better Collective co-founder and CEO, said the deal will be an “important milestone” in the company’s digital sports media journey.

“Upon closing of the acquisition, we will significantly grow our audience and reach a larger segment of generalist sports fans,” said Søgaard. “For years, Playmaker Capital has built incredibly strong sports media brands and excited sports fans across the Americas with high-quality sports content, cultivating a loyal and dedicated following. 

“The skilled team behind Playmaker Capital brings a unique set of media competencies that will boost our organisation. Saying that I am excited to welcome the new team to the Better Collective group would be an understatement.”

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