NASDAQ-traded Gambling.com Group [GAMB] announced yesterday that it has completed the acquisition of the sports betting service Freebets.com, and related assets.
Freebets.com is an online platform that provides the latest enhanced odds, expert betting tips, sports news, videos, and competitions to users aged 18+. The acquisition will cost Gambling.com between $37.5 million and $42.5 million. On the closing, the company paid $20 million and must pay an additional $10 million on the six-month anniversary. On the one-year anniversary of the closing, Gambling.com will make a final payment between $7.5 million and $12.5 million, depending on the revenue performance of the assets during the remainder of 2024.
Gambling.com anticipates that the assets will generate approximately $10 million in revenue over the rest of 2024 and incremental Adjusted EBITDA of around $5 million.
Founded in 2006, Gambling.com Group is a performance-marketing (i.e. affiliate) service provider in the online gaming and sports betting industry, primarily operating in the United States and Ireland. Last month, Gambling.com reported its Q4 and full-year results for 2023, demonstrating revenue growth in most regions. The company expects the acquisition of Freebets.com to drive strong growth in Europe.
“While expansion of gambling in the US grabs all the headlines these days, many of the industry’s most attractive markets remain in Europe, the historical home of the industry,” commented Charles Gillespie, CEO and co-founder of Gambling.com Group.
“I expect this acquisition to fundamentally change the balance of power within the European online gambling affiliate market and provide Gambling.com Group with a clear path to drive further growth in both our existing European markets as well as new ones. As part of the transaction, we are gaining a number of new colleagues in the region. I look forward to sharing our leading technology platform and high-performance culture with our new team members,” he added.
