Award-winning provider of digital marketing services within the global regulated online gambling industry, Gambling.com Group, announced on Monday that it entered into a definitive agreement to acquire Roto Sports, operator of RotoWire.com. The Group is expected to close the transaction for acquiring the popular provider of expert fantasy sports news in January next year.
The Price Tag of the Transaction Is $27.5 Million
Gambling.com announced that the aggregate purchase price is $27.5 million. The Group explained that $20.0 million will be paid at closing. Breakdown of that total represents $5.0 million in newly issued unregistered ordinary shares which are valued on an average price over the last 10 trading days, as well as another $15.0 million in cash.
The remaining $7.5 million will be cleared over the course of two years split into two payments of $2.5 million and $5.0 million on the first and second anniversary of the closing deal, respectively. According to Gambling.com, neither of the amounts would be “dependent on the financial performance of RotoWire.” It is important to mention that the transaction is subject to customary closing conditions.
The Group Will Leverage RotoWire’s Assets
By acquiring RotoWire, Gambling.com plans to fuel its US presence. The company revealed that following the acquisition it expects to see significant growth of its fiscal 2022 earnings. Leveraging RotoWire’s content library, workforce, partnerships and existing audience, the Group is looking to further strengthen its presence in the growing US online sports betting market.
“Gambling.com Group believes that RotoWire’s popular digital assets – when combined with the Group’s digital expertise and technology platform – will drive substantial, incremental affiliate revenue in the rapidly expanding sports betting environment,”reads a statement released by Gambling.com Group
According to the Group, RotoWire is at the helm of US fantasy sports. The company acknowledged that RotoWire has had more than 17 million unique web visitors for the last year. Additionally, the RotoWire has more than 100,000 paid subscriptions and its content is reaching millions of sports fans thanks to multiple distribution agreements with US sports companies.
The Acquisition to Bring Benefits for Gambling.com Group
Gambling.com Group’s CEO, Charles Gillespie, revealed that RotoWire solidified its presence as a fantasy sports leader in the US for the last 25 years. Additionally, he acknowledged that the company has “embedded their business into the heart of the American sports experience.” Gillespie added that RotoWire has created a solid bond with its customer base which will help the Group’s efforts to “capitalize on the new era of American sports – the betting and gaming era.”
According to Gillespie, Gambling.com will focus on expanding sports betting content as soon as the acquisition is closed. Moreover, he outlined that the new combination is expected to have an immediate impact on the company’s fiscal 2022 earnings. In conclusion, Gillespie said that the collaboration will undoubtedly propel the Group to a leadership position within the US market which will result in both short and long-term benefits.