Catena Media targets Germany with "largest ever" acquisition
Affiliate acquires German-language odds-comparison firm Baybets
Catena Media has continued its M&A spree with the acquisition of Baybets, an affiliate which specialises in sports betting comparison sites for German-speaking markets.
Catena will pay €26.5m up front for the company, with €13.25m being paid with newly issued shares in Catena and the remainder in cash.
The deal also calls for earn-out payments up to €63.4m, based on the performance of Baybets over the 24 months from 1 December 2017, although Catena said a “reasonably expected scenario” would see earn-outs of €30.5m.
The affiliate said the deal would “strengthen its offering within the sports betting segment and the very important German market”.
“We are proud to announce the largest acquisition made by Catena Media since company inception, making us one of the strongest sports betting affiliate players on the market,” said Henrik Persson Ekdahl, Catena’s acting CEO.
“We have set ambitious financial targets for the company, and the acquisition is fully in line with those targets. We are excited about being able to complete this deal, given the upcoming sports year of 2018, which will have both the Winter Olympics and the World Cup.”
The acquisition is expected to generate quarterly sales of approximately €2.25m with an operating margin of approximately 70%.
Baybets operates around 50 websites and a team of 23 employees who will form part of Catena Media’s Sports division, based at its offices in Malta.
The integration of Baybets into Catena Media will commence immediately following completion of the transaction, which is expected to occur in mid-December 2017.
“I would like to thank all the people that have been involved in the company’s journey so far, bringing us to where we are today,” said Jan Steffen, CEO, Baybets.
“We now look forward reaching new heights together with Catena Media on a long-term basis, both from an operational perspective and as shareholders. We are excited for all the upcoming opportunities that await”.
The deal is the second major acquisition made by Catena focusing on Germany in recent months, after the firm also acquired the financial services comparison site Beyondbits Media in November.