Better Collective (Nasdaq Stockholm: BETCO), a Copenhagen, Denmark-based sports betting media group, recently completed the acquisition of Atemi Group, an iGaming lead generation company, for up to £40m.
In details, the purchase price of the deal is approximately £40m, of which:
- £32.5m is paid upfront at closing in a combination of 1) £27.8m in cash and 2) £4.7m in Better Collective shares from the treasury shares holding, and
- £7.5m will be paid in equal quarterly deferred payments until the end of 2021.
Founded in 2015 by Richard Skelhorn, Atemi Group is dedicated to lead generation for iGaming through paid media (PPC) and social media advertising. The company’s distribution channels include Google, Microsoft Bing, Facebook and Instagram among others. Historically, its focus has mostly been on traffic acquisition towards iGaming (online and bingo games, among others) but has more recently shifted its interest in building and investing in sports betting comparison platforms.
Atemi Group currently has a global presence with its most important market being the UK. In 2019, the company generated revenues of €33m with an organic growth of 70% year on year. For 2020, Atemi is on track to send more than 180,000 new depositing customers to its iGaming partners with a revenue target set of over €40m and operational earnings of approx. €8m.
The acquisition represents a strategic step ahead for Better Collective with meaningful synergistic opportunities. The deal provides the company with additional channels of traffic sourcing high intent customers at a large scale. To create this, Atemi Group has built a tracking and attribution platform for online paid media activities. In addition, the acquisition provides the opportunity of scaling PPC activities into additional markets beyond the UK market and further investing in sports betting.
Following the deal, Better Collective’s activities relating to paid media will be consolidated into a newly launched 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 1st, 2020.
Led by Jesper Søgaard, CEO, Better Collective develops digital platforms for betting tips, bookmaker information and iGaming communities. Its portfolio of products include:
- bettingexpert.com, a destination for tips from expert tipsters and in depth betting theory,
- HLTV.org, an esports media and community focusing on competitive Counter Strike: Global Offensive (CS:GO), and
- vegasinsider.com, a source for sports betting information in the US.