Catena sells AskGamblers for €45m
The affiliate company has sold the brand to Gaming Innovation Group.
Malta.- The affiliate group Catena Media has reached a €45m deal to sell its AskGamblers brand to Gaming Innovation Group (GiG). It will receive an initial €20m to be followed by €10m a year after closing the sale and €15m after 24 months. It’s expected that the sale will complete in the first quarter of 2023.
The deal is structured via a share purchase agreement, which will include the acquisition of Catena Publishing Ltd (Malta) and Catena Media D.O.O. Beograd (Serbia). GiG will acquire Johnslots.com and Newcasinos.com as well as Askgamblers.com in a move that it says will help it generate sustainable long-term growth.
The websites generated €12.9m in the first nine months of the year and held a net book value of €27.2m in October. GiG will finance the initial payment in cash, a revolving credit facility and a share issue, to which existing shareholders have already agreed.
GiG Media director of business development Morten Hillestad said: “GiG Media has developed world class marketing technology and operational capabilities over the preceding years, and we feel that bringing the AskGamblers brand into the company structure will provide multiple opportunities for it to flourish.”
Managing director Jonas Warrer said: “We are very pleased to welcome quality websites such as Askgamblers.com into the business and look forward to integrating with the skilled teams that have built up the websites acquired.
“We want to be the leading casino affiliate in the industry, and this acquisition cements our position.”
GiG expects to receive an EBITDA margin of 60-70 per cent, with the new assets expected to generate 53,000 first-time depositors in 2023. Meanwhile, Catena plans to focus on North America following a strategic review of its business.
Catena Media CEO Michael Daly said: “Today’s agreement is a major step on our journey to focus the business on online sports betting and casino affiliation in high-growth, regulated markets in the Americas.
“I am confident that in Gaming Innovation Group we have found a buyer that will provide a strong environment for AskGamblers and the other brands and their talented people to develop and grow.”
In August, Catena reported a 4.9 per cent decline in revenue for Q2 to €28.9m. It posted a net loss of €1.3m compared to a €4.3m profit in Q4 2021. EBITDA was down 39.7 per cent to €9.1m. Pre-tax profit was down by 12.6 per cent to €23m and net profit by 13.2 per cent to €18.5m.
