In a significant move last month, Gambling.com Group finalized a deal to purchase Freebets.com, marking a strategic investment in the European online gambling affiliate market. The acquisition, valued between $37.5m and $42.5m, hinges on Freebets.com’s future revenue performance.
The agreement entails an initial payment of $20.0m, followed by an additional $10.0m after six months, and a subsequent payment ranging between $7.5m and $12.5m after one year, contingent upon 2024 revenue. Gambling.com Group anticipates Freebets.com to yield an extra $10.0m in revenue and $5.0m in incremental adjusted EBITDA this year.
Strategic Vision and Expansion Plans
Charles Gillespie, CEO of Gambling.com Group, emphasized the acquisition as a testament to the company’s commitment to Europe, alongside its burgeoning presence in the US market. Gillespie anticipates the acquisition will reshape the European affiliate market, propelling further growth in existing and new markets.
“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,” Gillespie stated. “I expect this acquisition to fundamentally change the balance of power within the European online gambling affiliate market. It will 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.”
The acquisition coincided with the release of Gambling.com Group’s full-year 2023 results, showcasing robust financial performance. Revenue surged by 42.1% to $108.7m, driven by key highlights such as the launch of Casinos.com and a strategic partnership with UK media giant, The Independent.
Buoyed by its success in 2023 and the Freebets.com acquisition, Gambling.com Group remains bullish about its prospects for 2024. Revenue is forecasted between $129.0m and $133.0m, representing a significant uptick from the previous year. Additionally, adjusted EBITDA is projected to range between $44.0m and $48.0m, underscoring the group’s optimism for continued growth.
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