The affiliate marketing giant will pay £32.5m upfront for the London-based pay-per-click specialist.
UK.- Better Collective has closed a deal to acquire Atemi Group for £40m.
The Denmark-based affiliate marketer will pay £32.5m upfront through £27.8m in cash and £4.7m in Better Collective shares, followed by a further £7.5m in quarterly deferred payments until the end of 2021.
The company said the acquisition was a strategic move designed to boost its lead-generation capabilities and obtain synergies.
Atemi was founded in 2015 and specialises in paid media and social media advertising. It will provide Better Collective additional channels of traffic to convert potentially high-spending customers, including social media channels since Atemi is an approved advertiser on Facebook and Instagram.
Atemi generated €33m in revenue in 2019, with an organic growth of 70 per cent year-on-year. It has a target to beat the €40m mark this year.
Better Collective chief executive, Jesper Søgaard, said: “This acquisition is a very important step for us to reach our strategic target of becoming the leading sports betting aggregator in the world.
“It will immediately bring Better Collective in the absolute leading position when in comes to customer acquisition for the online operators, with an estimated annual NDC level of more than 600,000.
“From a financial perspective, Better Collective will take a leap of having proforma annual revenue of estimated more than €120m with high operational earnings and cash flow.”
Better Collective said its financial targets for 2020 remain unchanged. Last month it reported a year-on-year increase in revenue and net profit for H1.