Catena continues M&A push with £17.4m Online Media deal

Catena Media has acquired certain assets of Online Media for £17.4m as the lead generation firm continues to strengthen its position in sports betting affiliation.

The deal includes the domains Bets.co.uk, Bonuses.co.uk and iGamble.co.uk and will see the Malta-based firm pay an upfront fee of £11.65m and a maximum earn-out of £5.77m.

According to Catena Media, the acquisition will enable the company to obtain a strong position with alternative display marketing and a greater foothold in the UK sports betting market.

“We work continuously to identify attractive acquisition prospects that complement and strengthen our portfolio,” Robert Andersson, CEO of Catena Media, said.

He added: “The acquired assets in Online Media will strengthen the sports betting offering and broaden the existing media offering to customers by adding alternative display marketing.

News of the deal comes after Catena Media recently reported a 168% year-on-year rise in 2016 revenues with  the affiliate marketing company reaping the rewards of its aggressive acquisition strategy.

Catena completed a number acquisitions throughout 2016, including SBAT, casinouk.com and various US-facing affiliate assets.

The Online Media deal will see Catena acquire assets with a running rate of sales of approximately €300,000 per month and a pre-tax profit margin of more than 70%.

“We are now taking the next step in our development as part of Catena Media,” Paul Speakman of Online Media said.

“We believe that this is the right time for us, as together we will be able to provide an even more powerful platform for growth.”