Gambling.com Group seals $27.5m purchase of Roto Sports
Affiliate giant paid $20m upfront and will shell out $2.5m and $5m on first and second anniversaries of deal being finalised
Gambling.com Group has completed the acquisition of Roto Sports, the company behind fantasy sports resource site RotoWire.
The Nasdaq-listed affiliate announced in December 2021 that it had entered into a definitive agreement to acquire Roto Sports for the aggregate purchase price of $27.5m.
The agreement included an upfront fee of $20m, consisting of $15m in cash and $5m in newly issued ordinary shares. The affiliate will pay a further $2.5m and $5m on the first and second anniversaries of the deal being finalised.
Meanwhile, the aggregate purchase price is approximately 4x Roto Sports’ estimated 2021 revenue, Gambling.com Group revealed.
Elias Mark, CFO at Gambling.com Group, said: “We completed the acquisition according to our internal timelines on 1 January 2022. We will consolidate Roto Sports into our group financial statements from 1 January 2022.”
In December, Gambling.com Group highlighted RotoWire’s “existing audience, content library, talented workforce, media partnerships and trust with US sports fans” as an opportunity to further increase affiliate revenue in the US.
RotoWire has been operating for 25 years boasting more than 100,000 paid subscribers and more than 17 million unique web visitors in the 12 months preceding the announcement of the acquisition on 13 December.