Sports betting media group, Better Collective, has completed the acquisition of Atemi Group, for up to €44m. Atemi Group is one of the world’s largest companies specialised within lead generation for iGaming through paid media (PPC) and social media advertising. The acquisition has been lauded as a major strategic move for Better Collective with significant synergistic opportunities.
The purchase price has been agreed to £40m (approximately €44m) of which £32.5m is paid upfront at closing in a combination of £27.8m in cash and £4.7m in Better Collective shares from the treasury shares holding. The remaining £7.5m will be paid in equal quarterly deferred payments until the end of 2021.
The acquisition of Atemi Group provides Better Collective with additional channels of traffic sourcing high intent customers at a large scale. Atemi Group has built a tracking and attribution platform for online paid media activities. So far, the focus of the company has mainly been on the UK market, and for Better Collective, the acquisition provides the opportunity of scaling PPC activities into additional attractive markets and to further invest in the sports betting opportunity.
Jesper Søgaard, CEO of Better Collective, commented: “This acquisition is a very important step for us to reach our strategic target of becoming the leading sports betting aggregator in the world. Atemi Group has been on an impressive growth journey since the company was founded in 2015, and has reached the large scale it takes to be competitive and profitable within paid media. We see many opportunities for expansion into new markets and for harvesting synergistic effects between our assets and competences.
“The acquisition will immediately bring Better Collective in the absolute leading position when in comes to customer acquisition for the online operators, with an estimated annual NDC level of of more than 600.000, and from a financial perspective Better Collective will take a leap of having proforma annual revenue of estimated more than €120m with high operational earnings and cash flow.”
Richard Skelhorn, founder of Atemi Group, added: “We built a very successful gaming affiliate business over the past five years at Atemi. All credit goes to the amazing team and now we are thrilled to be joining Better Collective. Atemi and Better Collective are both market leaders in their respective areas, and the combination of the two companies, creates a very strong force in gaming affiliation. I am certain this will take us to the next level.”
Additionally, Better Collective’s financial targets for 2020 remain unchanged as communicated in its Q2 report. All activities relating to paid media will be consolidated into a newly formed Paid Media Division with dedicated management and organisation that will be reported as a new financial segment going forward. The Paid Media Division will be included in Better Collective’s Group accounts from October 1, 2020.