Go West…Catena Media acquires US online gambling assets

Robert Andersson

Updating the market, Stockholm Nasdaq-listed Catena Media has entered the regulated US online gambling market by confirming the acquisition of licensed affiliate website assets from three separate US founders.

Specifying acquisition details, Catena governance stated that it had agreed to pay an upfront cash and shares deal valued at $15 million, with 25% of the deal being settled through a distribution of 440,669 new shares in its business.

As a further deal incentive, Catena governance has placed a $45 million cap earn-out, based on revenue performance of the assets over a period of three-years.

Catena an industry marketing and player acquisition specialist stated that its new assets would contribute directly to corporate performance, further detailing that the acquired websites had an estimated revenue of €1 million per quarter with a 75% operating margin.

The generated revenues stem from licensed operators in the regulated Casino and Poker markets in the states of New Jersey and Nevada. Following the acquisition, it is estimated that close to 50% of Catena Media’s revenue will be derived from regulated markets.

Catena governance did not disclose the name of individual assets, but confirmed that among its acquired US websites were playnj.com and USPoker.com

Robert Andersson, CEO of Catena Media commented on the US acquisitions

“We are very excited about this opportunity, which will not only see Catena Media becoming the largest regulated casino affiliate in the US, but also puts us in pole position to take advantage of further re-regulation in what has the potential to become the world’s largest iGaming market. This is an important step in realizing our vision to become the world´s number one provider of high-value iGaming leads”,

2016 has seen Catena move to increase its international affiliate network as the company moves to extend its player marketing footprint in regulated igaming and betting markets. This December Catena confirmed its £10 million acquisition of leading UK player portal Casinouk.com

“We are impressed with Catena Media and are excited to join their strong and experienced team, which will enable us to take advantage of the many strategic and 2 D-2452017-v2 financial benefits expected from the regulation in the US. We look forward to continuing the journey we have started, and Catena Media is a great match for us”, commented Aaron McCann, website co-founder and seller to Catena Media.

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