Better Collective, a Danish developer of digital platforms for bookmaker information, iGaming communities, and betting tips, completed the acquisition of Ribacka Group, a Stockholm, Sweden-based company which owns a network of sports betting and casino marketing platforms.
The purchase price amounts up to €30m, of which:
– €15m have been paid in cash at closing,
– €6m will be paid in May 2019 in either cash or ordinary shares in Better Collective, and
– €9m will be paid in 2020, pending some agreed performance criteria.
Led by Jesper Søgaard, CEO, Better Collective has a portfolio of more than 2,000+ websites and products, including bettingexpert.com and SmartBets. The company has consolidated Ribacka into the group accounts as from January 1, 2019 and now aims to establish a strong affiliate position within Sweden.
Founded in 2015 by brothers CEO Jesper Ribacka and CMO Jens Ribacka (who led the additional office in Malta), Ribacka provides igaming lead generation services to drive massive volumes of high quality traffic via 1) an account manager that takes care of client’s needs, 2) access to Sweden’s largest sports betting network of websites and 3) access to the country’s casino online news and guides.
The company expects to generate a revenue of >€6 in 2018, with operating earnings (EBITA) of >€5m EUR. Following the deal, Ribacka Group will mantain its headquarters in Stockholm under the name Better Collective Sweden with Jesper Ribacka and Jens Ribacka continuing as local CEO and board member, respectively, in the company. They will work along with the Better Collective headquarters in Denmark to ensure continuity and optimization in the best way.
The acquisition took place in a dynamic period given the new market regulation which comes into effect in Sweden at beginning of 2019, by which the current monopoly system ended. Recently, the Swedish gambling authority announced the first licenses granted to a number of major international operators, including some partners of Better Collective. Most of the new licensees are familiar with the Swedish market, having already operated in the sector prior that the new rules came into effect.