Catena Media bolsters New Jersey presence with latest acquisition
The affiliate firm agrees to purchase BonusSeeker for $6.5m while also reporting a 69% rise in revenues
Catena Media has boosted its presence in the regulated New Jersey market with the $6.5m acquisition of BonusSeeker.com.
BonusSeeker and its related assets provides users with comprehensive reviews of the legal casino operators in New Jersey.
The acquired business currently generates quarterly sales of approximately $450k, with an operating margin of approximately 70%.
Catena has implemented an earn-out of a maximum of £9.5m for the business which is based on revenue performance over a two-year period.
“Through the acquisition of these assets we confirm our position as the number one player in egaming lead generation in the US,” said Catena’s interim CEO Henrik Persson Ekdahl.
“This is completely in line with our growth strategy and is a big step in furthering our lead to our European & American competitors.
“Furthermore it is a strong signal to the industry that we are picking up pace in the US market,” he added.
Catena is well established in the state of New Jersey following its $15m acquisition of PlayNJ which was completed in December 2016. The affiliate firm is also active in Pennsylvania after the 350k purchase of PokerScout.com in November.
Catena today also reported a 69% rise in year-on-year revenues to €67.6m after quarterly revenue growth of 16% to €20.1m in Q4.
Annual EBITDA levels hit €36.1m, while new depositing customers also shot up by 88% to 386,000.
The affiliate firm has pinpointed the US as a key growth market in its FY17 report as the Malta-headquartered company bids to reach EBITDA levels of €100m by the year 2020.
A statement to investors read: “One of our key strategic priorities is continued expansion in the US.
“The acquisition of PokerScout was very propitious given that Pennsylvania has now opened up for a regulated online gaming market.
“A number of states have presented proposals for legalising online gaming, including New York, where the state senate is expected to adopt legislation that will allow online poker.
“Also worthy of note is that the US Supreme Court is expected to examine a case that could open the sportsbook market for the entire country.
“Catena Media is well positioned to leverage the positive possibilities and we welcome the trend of regulation and re-regulation in the various sectors.
“In the last few years, our focus has been on expanding operations in markets that are or will soon be subject to regulation, and we are starting to see results.”