Catena Media has strengthened its position in the regulated New Jersey market through the acquisition of igaming affiliate BonusSeeker.com and related assets for an expected US$11m.
BonusSeeker provides its users with reviews of all the legal casino operators in New Jersey. The acquired assets currently generates quarterly sales of around US$450,000 per quarter with an operating margin of approximately 70 per cent.
”Through the acquisition of these assets we confirm our position as the number one player in igaming lead generation in the US,” said Henrik Persson Ekdahl, acting CEO of Catena Media. “This is completely in line with our growth strategy and is a big step in furthering our lead to our European and American competitors. Furthermore, it is a strong signal to the industry that we are picking up pace in the US market.”
The initial purchase price of US$6.5m includes $1m to be paid with newly issued shares at prevailing market rate in Catena Media, with the remainder in cash. In addition, there is an expected earn-out of US$5.5m based on revenue performance over a period of two years.
The shares will be issued at a subscription price of SEK128.21 per share (£10.92), corresponding to the volume-weighted average price for Catena Media’s shares on Nasdaq Stockholm during a period of 30 trading days up to and including March 27, 2018.
In a reasonably expected scenario, the total cost of the acquisition would be approximately US$11m. This comprises the upfront payment of US$6.5m and earn-out payments totalling US$5.5m. In this scenario, the acquired assets need to generate revenue growth of between 80 and 140 per cent during the earn-out period.
The assets will be consolidated in Catena Media next month.
