Affiliate group Better Collective has brokered a deal to acquire US sports media business the Action Network for $240.0m.
Under the agreement, which Better Collective said is the largest acquisition in its history, the affiliate will take ownership of Action on a cash and debt-free basis. Better Collective will fund the majority of the transaction in cash and $12.0m via the issue of new shares.
Subject to customary regulatory approvals, the deal is expected to complete before the end of the second quarter of this year.
Launched in 2018, Action’s media platforms provide original sports news content, insights, lists of odds and proprietary betting tools and data. Action’s revenue model includes an affiliate marketing business focused on customer acquisition for betting operators in the US, as well as subscription products such as Action Pro, Action Labs and Fantasy Labs.
Action, which has commercial partnerships with US-based sportsbooks such as BetMGM, DraftKings, FanDuel and PointsBet, expects to report approximately $40.0m in revenue in 2021.
Better Collective said the acquisition of Action would consolidate its position in the affiliate and customer delivery verticals within online sports betting in the US.
Patrick Keane will remain as chief executive of Action, reporting to Marc Pedersen, US chief executive at Better Collective, with Action set to integrate within Better Collective’s current organization where relevant in order to generate efficiencies.
Should the acquisition go through as expected, Better Collective said its total group revenue would rise from around $192.6m to more than $216.7m, while operating profit could climb from approximately $60.2m to in excess of $66.2m.
“This acquisition, which is the largest in Better Collective’s history, gives us a leading position within affiliation in the US and a strong foundation for profiting from the continuous regulation of the US betting market,” Better Collective chief executive Jesper Søgaard said.
“We add three new, very well positioned US sports media brands to our portfolio and welcome around 100 new colleagues, together representing an invaluable pool of knowledge and expertise on the US sports betting media market.”
Action chief executive Keane added: “I am thrilled about this outcome for our employees and investors and we look forward to continuing to forge great relationships with our league, media and sportsbook partners.
“Under Better Collective’s ownership, we become part of a company with many years of experience and all the resources necessary to further grow our position and develop our offering, to ultimately enhance the betting and entertainment experience for sports fans.”
The deal comes after Better Collective in March also announced the acquisition of Swedish online sports betting media platform Rekatochklart.com for $4.6m.