Playmaker Capital acquires Wedge Traffic for $31.2m in cash and stock deal
Wedge Traffic becomes Playmaker’s first affiliate platform business in a bid by emerging media firm to increase US market exposure
Toronto-based digital sports media company Playmaker Capital has acquired affiliate firm Wedge Traffic in a $31.2m deal.
Payment for the deal, Playmaker’s 15th acquisition since April 2021, consists of $8.5m in cash, $2m in shares and a contingent consideration of approximately $20.7m.
The contingent consideration consists of two separate earn-out payments, totalling $16.7m and payable to Wedge upon the affiliate achieving certain revenue and EBITDA targets in each of the 12-month periods in 2023 and 2024.
Wedge Traffic is currently active in 16 states of the US as well as in the Canadian province of Ontario, owning and operating eight web properties.
The firm also currently has affiliate marketing relationships with 15 online sportsbooks and casinos.
Discussing the deal, Playmaker said it will also leverage Wedge’s expertise across the newly regulated Latin American markets.
“We have been very clear that creating a centre of excellence in affiliate was key to rounding out our offering as a leading sports media business,” said Jordan Gnat, Playmaker CEO.
“We look to super-serve all of our partners, and Wedge allows us to better serve critical customer segments, sports betting and igaming operators.”
Wedge founders Dan Kersh and David Copeland will join Playmaker’s senior leadership team as part of the sale.
In remarks concerning the transition Kersh cited two main reasons for joining the Playmaker family: “Firstly, they understand how to support and accelerate data driven marketing within the igaming sector. Secondly, and perhaps of even greater importance, they appreciate the value of creating a winning culture and how it must be considered the heartbeat of any successful business.”
Discussing the deal, RB Capital’s Ben Robinson, who was part of the team advising Playmaker on the deal said: “We are delighted to have advised Wedge on the sale to Playmaker and see tremendous synergies in this exciting partnership.
Earlier this year, Playmaker recruited ex-Kingstar Media director of sales and media Adam Seaborn to be its head of partnerships for the North America as part of a drive to scale the firm’s US presence.