In a strategic move set to shake up the gaming industry, a prominent Danish firm has acquired a notable gaming company from Newcastle for a substantial sum.
This acquisition underscores the expanding footprint of the Danish firm in the global gaming market, highlighting the continued growth and consolidation within the industry.
Details of the Acquisition
Danish gaming firm Better Collective has acquired Newcastle-based AceOdds in a deal valued at €42m (£35.9m/$45.5m). This transaction was completed on a net cash/debt-free basis and implies a 12-month EBITD multiple of 4x.
The payment structure includes €40m in cash, with the remaining balance covered by Better Collective shares. The share price is based on the Nasdaq Copenhagen’s volume-weighted average share price five days before and ending five days after the deal’s closing.
Strategic Importance
Better Collective’s acquisition of AceOdds aligns seamlessly with its vision for the future, according to Ian Bowden, Senior Director, UK and Ireland at Better Collective. Bowden emphasised that AceOdds’ offerings fit perfectly with Better Collective’s overarching strategy of acquiring leading sports media brands.
“This strategic acquisition brings us a robust owned and operated sports betting media brand in the UK market, poised for global scalability,” Bowden stated.
Financial Outlook
Following the acquisition, Better Collective has revised its full-year 2024 financial targets. Revenue is now expected to range between €395m and €425m, up from the previous forecast of €390m to €420m.
EBITDA before special items is now projected between €130m and €140m, compared to the earlier estimate of €125m to €135m. This upward revision reflects the strong financial footing and growth potential of the combined entities.
AceOdds recorded operational earnings of approximately €10m over the last twelve months. Better Collective plans to reinvest part of these earnings into enhancing its product and user experience, aiming to leverage AceOdds’ strengths further.
Background of AceOdds
Founded in 2008, AceOdds has established itself as a multi-language sports betting company offering betting tools, reviews, odds, and streaming programmes.
The company has consistently achieved recurring revenue, which is a testament to its stable business model and growing user base.
Better Collective will utilise zero and first-party data from AceOdds’ app to improve targeting on AdVantage, its internal adtech platform.
Better Collective’s Vision
Better Collective has a clear vision of becoming the leading sports betting media group by acquiring top-tier brands in various niches. The acquisition of AceOdds is a significant step towards this goal.
With hundreds of thousands of installs, the AceOdds app will enhance Better Collective’s reach, providing partners with an even broader audience.
This move is expected to fill a crucial gap in Better Collective’s portfolio, offering a vital sports betting affiliation brand in a pivotal growth market.
Future Prospects
Better Collective intends to set up a share buyback scheme to manage the share-based portion of the payment. This will be settled in shares, ensuring a smooth transition.
The company is poised for further growth, leveraging the strengths of both Better Collective and AceOdds to achieve greater market penetration.
With the acquisition complete, both companies are expected to benefit significantly from shared resources, expertise, and market positioning.
Industry Impact
This acquisition highlights the increasing trend of consolidation in the gaming industry. Larger firms are continuously seeking growth opportunities through strategic acquisitions.
For the gaming community and stakeholders, this move signals a robust future with enhanced services and offerings stemming from such synergistic collaborations.
The acquisition of AceOdds by Better Collective marks a significant milestone in the gaming industry, promising substantial growth and expansion.
Both companies are set to benefit from this strategic move, underscoring the importance of such acquisitions in the evolving gaming landscape.
