Catena Media has entered the French igaming market by paying an initial €8.2m for sports betting affiliate site ParisSportifs.com.
A company that generates traffic numbers from search engines, Twitter and YouTube channels, the acquired assets currently generate sales of around €500,000 per quarter.
The assets will be consolidated in Catena Media within the current month.
”I am very proud that we are now entering the regulated French market through this strategic acquisition of ParisSportifs,” said Catena’s acting CEO Henrik Persson Ekdal. “This is in line with our growth strategy and strengthens our leading position in Europe. It’s also a strategic move for us, bringing growth in sports betting with the FIFA World Cup just around the corner.”
The initial purchase price amounts to an up-front payment of €8.2m, of which €6.2m will be paid in cash, with the remaining €2m in newly issued shares in Catena Media.
There is also an earn-out amounting to a maximum €5.7m, based on revenue performance over a period of one year. In a reasonable anticipated scenario, with a total earn-out payment of €3.2m, the sellers would need to generate revenue growth of between 40 and 60 per cent during the earn-out period of one year. Up to 50 per cent of the earn-out may be paid with shares in Catena Media.
