Affiliate group Catena Media has acquired online sports betting and casino affiliation assets from i15 Media, LLC for a total purchase price of $45.0m.
The acquired assets comprise over 100 affiliate sites and domains including state-specific websites such as Michigansharp.com and NYSportsDay.com, as well as US-wide websites like Bonus.com and Gamblingonline.com.
These assets generated combined revenue of approximately $8.0m during the 12 months to July 31, 2021.
Catena said the acquisition will help to strengthen its North American business, adding that it expects the purchase to have a direct positive effect on its earnings before interest, tax, depreciation and amortization.
Of the total purchase price, $12.5m is payable in cash on closing, with a further $20.0m to be paid in three instalments: $5.0m in cash or shares on December 15 this year, $5.0m in cash on June 1 next year, and $10.m in cash on December 15, 2022.
The remaining $12.5m of the purchase price will be settled with 2,207,357 of new Catena shares as soon as feasible after closing.
“The addition of i15 Media’s online sports betting and casino assets to our North American portfolio will accelerate our already rapidly expanding business there,” Catena chief executive Michael Daly said.
“In addition to i15’s strong national and state brands generating revenues in current markets, the additional coverage for upcoming states will further cement Catena Media’s leadership position in the United States.”
“I am also excited that i15 Media’s founder and owner will join us as a consultant for the next few years. He will provide valuable support for our internal team as we pursue our roadmap.”
The deal comes after Catena reported a 1,421.4% year-on-year increase in net profit for the first half of its financial year, after the return to a traditional sports calendar helped push revenue up during the period.
The group’s North American business grew 121.0% year-on-year in the first half of 2021 and accounted for 49.0% of total group revenue for the period.