Stockholm-Listed Raketech Acquires P&P Vegas Group for $19M

Online gaming marketing affiliate firm Raketech announced today the acquisition of P&P Vegas Group Inc to strengthen its position in the growing US markets.

Financial Details of the Acquisition

The transaction is valued at €16 million ($19 million) on a debt-free basis and will be settled with €9 million ($10.68 million) in cash and 3,881,968 new shares of the combined entity to the amount of €7 million ($8.32 million) being issued at transaction closing. The purchase price is a multiple of 5.6x EBITDA (earnings before interest, taxes, depreciation and amortization) and 3.8x revenues of the acquired company for the last 12 months.

“With these acquisitions we are delivering on several strategically important goals. Significant sports revenues, revenues from high growth markets, boots on the ground in the US and asset diversification and new revenue streams.”

Oskar Mühlbach, CEO, Raketech

The new shares of the combined business, whose number was determined by the volume-weighted stock price of the company for a period of 30 trading days prior to July 5, 2021, will be subjected to a lock-up period of 24 months following the transaction close.

Through the acquisition, the Stockholm-listed affiliate is acquiring assets such as the US betting tipster community and Pickandparlays.net, as well as all assets from QM Media AB, including its website specialized on cricket Onlinecricketbetting.net and the traffic the website generates from Indian customers.

“… by adding such a strong brand as PicksandParlays, Raketech will be able to add significant value to the US business through the implementation of the affiliate marketing sales in all licensed states.”

Oskar Mühlbach, CEO, Raketech

Raketech Acquires US and Indian Betting Assets

With over a decade of history in the US, the Picksandparlays brand accounts for around half a million unique users per month, generating revenue from user subscriptions and sales of tips. Raketech is planning to monetize its existing commercial relationships with sportsbooks, in addition to traditional affiliation services.

The acquisition of P&P Vegas Group will reinforce Raketech’s team with a network of sports betting experts and a team of six full-time employees based in Ohio to allow the marketing affiliate to utilize their knowledge of the local market.

“By partnering with Raketech we gain access to their well-established infrastructure that will help leverage our strong brands and market positions. We are enthusiastic to become shareholders in Raketech and to be a part of the exciting future we have planned.”

Marcus Egstam, CEO, QM Media

With India being one of the most important markets for cricket, a sport rising in popularity, and QM Media’s Onlinecricketbetting brand reaching over a million unique users during major events, the acquisition of the brand will allow Raketech to establish a firm position on the market and within affiliation of cricket betting.

The transaction is expected to bring a positive effect to Raketech by doubling US-originating revenues and pushing revenues from India to 5% to 10% of the group’s total, while the sports vertical of the company is expected to account for 30% of the group’s total revenues.

In a separate press release today, Raketech, which posted solid first quarter performance this year, announced it signed a one-year revolving credit facility of €15 million with Avida Finans AB.

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