Raketech adds to US sports betting portfolio with ATS acquisition
Malta-based affiliate to set up US office in Baltimore following $15.5m purchase of tipster brands portfolio
Raketech has bolstered its position in the US sports betting market with the $15.5m acquisition of multi-brand tipster affiliate ATS Consultants.
The business provides pre-game betting content across US sports via domains including Winnersandwhiners.com, Statsalt.com and Pickpapa.com. The sites are managed by a dedicated team in Baltimore.
The purchase price will be settled in a cash payment of $12m on completion and through an additional cash payment of $1m six months later. The remainder will be settled with new Raketech shares amounting to $2.5m.
As a result of the acquisition, Raketech’s US revenue is expected to provide up to 20% of group total during Q1 2022, while the affiliate’s sports segment will account for approximately 35% of total revenue over the same period.
The purchase price represents a multiple of approximately 6 x EBITDA and 2.5 x revenue for the last 12 months, with the possibility of additional earnout payments based on certain performance measures within 36 months.
The acquisition strengthens Raketech’s US asset portfolio and includes an additional 20 employees in Baltimore. The business model is based on user subscriptions and the sale of sports betting tips, or picks as they are known in the US.
The ATS team will continue to operate from Baltimore and will form Raketech’s local office in the US, to be led by current ATS CEO Jordan Abrams.
“I am thrilled that we are able to follow up the latest acquisition of P&P Vegas Group with yet another strategically important acquisition in the US,” said Oskar Mühlbach, CEO of Raketech.
“This market is of specific interest to us as it is expected to grow substantially within the next years and I believe that adding Raketech’s commercial and operational ability to the acquired assets is a great way to maximise this opportunity.
“I am also excited to have the talented ATS team on board, and I am looking forward to combining our commercial models and to share technology and know-how between us.
“Furthermore, as Raketech already offers sports insights and betting tips in the US, there are obvious opportunities to cross-promote and collaborate across our ecosystem of assets to provide even better service to the end-user as well as even better marketing opportunities for our clients, the operators,” he added.
The acquisition is scheduled to close by 15 December 2021 and will be settled using Raketech’s current cash reserves together with funding from Raketech’s credit facility.