Denmark's Better Collective Acquires Playmaker Capital for $188 Million
Danish betting analytics company Better Collective has expanded its North American presence by acquiring Toronto-based Playmaker Capital for $188 million in cash and stock. The deal will see Better Collective owning 65% of the purchase through equities, including newly issued shares, and paying 35% in cash.
Playmaker Capital, a leading digital sports media group, operates multiple sports media brands in the Americas. After the deal closes, it'll become a fully-owned subsidiary of Better Collective. The Danish firm expects this acquisition to boost its media capabilities and widen its audience reach across its sports media portfolio.
The transaction is subject to legal, regulatory, and Playmaker investor approvals. It's slated to happen in the first quarter of next year. The company's two largest investors, Relay Ventures and JPG Investments Inc., control 24% of its outstanding equity.
Sports Media and Betting M&A Market Continues to Attract
This acquisition confirms there's still hunger for mergers and acquisitions at the crossroads of sports media and betting, especially if the target owns sought-after assets. Playmaker's holdings of Futbol Sites, The Nation Network, and Yardbarker make it a valuable target. Plus, the company is already profitable with an EBITDA of $16 million on revenue close to $59 million over the last 12 months.
Better Collective thinks it can reduce the EV/EBITDA multiple from 11.7x to below 5x by the end of 2026.
Playmaker's assorted internet properties bring in 200 million unique monthly visitors and have over 180 million followers across different social media platforms.
A Potentially Life-Changing Acquisition for Better Collective
Playmaker Capital also gives Better Collective a way into the potentially lucrative South American sports betting market with its ownership of Futbol Sites. Countries like Colombia and Peru already have lively sports betting markets, and Brazil could be the jackpot of South American sports betting. If so, Better Collective may have materially predicted the future with this acquisition of Playmaker Capital.
Better Collective CEO Jesper Søgaard described the deal as "transformational," saying, "Acquiring Playmaker Capital is in many ways life-changing for Better Collective. It'll be one of our most important milestones on our journey toward becoming the top digital sports media group. When the deal goes through, we're going to amass a larger audience and attract a bigger slice of the generalist sports fan market. Playmaker Capital has spent years creating superb sports media brands and enthralling sports fans across the Americas with premium sports content, cultivating a deep, faithful following."
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Source: www.casino.org
