Affiliate business Raketech has announced that it has completed the acquisition of US-facing tipster ATS Consultants.
First announced last month, the agreed purchase price for the deal was $15.5m on a cash and debt-free basis, with $12.0m of this being paid in cash on closing and a further $1.0m six months post-closing.
The remaining $2.5m will be settled through the issuance Raketech shares with a 36-month lock-up period.
Raketech will now integrate all of ATS Consultants’ assets and liabilities, including websites Winnersandwhiners.com, Statsalt.com and Pickpapa.com, together with the tipster’s roster of employees.
The affiliate said it had identified several growth and development opportunities for the acquired assets, such as the implementation of Raketech’s technology infrastructure and introduction of affiliate marketing sales in all licensed states in the US.
Raketech added that as a result of the acquisition, it expects to reach over €50.0m ($56.4m) in annual revenue with an EBITDA margin in excess of 40%.
“With all formalities now successfully closed I look very much forward to combining our commercial models and to share technology and know-how between our teams to address the so important US market,” Raketech chief executive Oskar Mühlbach said.
“As a matter of fact, with this acquisition, over 20% of our revenues are expected from the US already during Q1 of next year, putting us in a good position in the rapid growing US market. Furthermore, I am happy that we through this acquisition strengthen our US organization with a strong local team with extended knowledge within the US sports industry.
“I am confident that together with the ATS team we will be able to accelerate the growth of our market share in the US sports industry.”
The acquisition adds to Raketech’s recent purchases in the US, including QM Media AB in a deal worth €16.0m, while the business also announced its acquisition of Spanish organic casino affiliation marketing company Infinileads and its key assets Slotjava.es and Slotjava.it.
Last month, Raketech also revealed that it had set a new revenue record during the third quarter of its 2021 financial year, helped by the impact of recent acquisitions.
Revenue for the three months to 30 September reached €9.6m, up 30.4% from €7.4m last year.