Popular online sports media group and super affiliate Better Collective has sealed a €21.4 million ($23.5 million) deal for the acquisition of Canada Sports Betting (CSB). The deal sends a clear message regarding the group’s intention to harness the potential of the soon-to-be-launched Canadian market.
Understanding the Context
The deal comes less than 14 days prior to Ontario launching its online gaming and sports betting market for fully licensed operators on April 4. Ontario is the largest Canadian province in terms of population, which means it represents one of the most powerful magnets in the country for brands looking to expand in the region. PointsBet, LeoVegas, FanDuel, and Bet365 are just a few of the brands that have already been given access to enter the market.
Better Collective plans on using CSB together with a few of its already existing brands such as VegasInsider and the ActionNetwork to point Canadians passionate about sports towards the best gaming and betting platforms online. CSB provides crucial information regarding a large number of sports betting operators that currently accept Canadian customers.
This means the company will help Better Collective’s users make the best-informed betting decisions while going online. CBS also displays a wide range of sports betting bonuses, reviews, and suitable odds suggestions for a complete experience. The company is looking forward to working with the Better Collective brand which they consider to be a well-grounded one with “a solid position in the market”.
The Deal in Numbers
The group that hired Britt Boeskov as the new senior vice president of strategy at the beginning of the year has agreed to pay €15.9 million ($17.4 million) as an up-front payment. The remaining amount of €5.5 million ($6.1 million) will be paid in the form of contingent deferred payment. The deferred payment will allow Better Collective to change the initially-established acquisition cost depending on whether the business will achieve its revenue targets or not.
By acquiring CSB and adding to its existing synergy of powerful brands, the group plans to get in the lead of the online sports betting market in Canada and create a series of flagship brands. Better Collective also foresees the continuous expansion for the sports betting market in North America, while projecting increased revenues as well as higher operational earnings for its own business. In terms of numbers, the group believes CBS will help it generate excess revenue worth €5 million ($5.49 million) by the end of 2022. Accordingly, Better Collective took the decision to increase its yearly revenue goal from €75 million ($82.4 million) to €80 million ($87.9 million).
The group’s chief executive Jesper Søgaard said he was “very happy” to add CBS to their portfolio while mentioning the powerful foothold they expect to be gaining in the sports gambling market in Canada. According to Deloitte’s “Bettors’ Perspectives” report in 2022, most Canadians are not yet aware of the new sports betting laws and the market’s expansion in their country, so the acquisition of CBS seems to come at an excellent time.