The Danish affiliate group Better Collective will pay $240m for Action Network.
Denmark.- The Copenhagen-headquartered affiliate group Better Collective has reached a deal to buy US rival Action Network Inc for $240m to expand its strength in the growing US sports betting market.
It said it expected the deal to complete in the second quarter of 2021, adding that it expected Action Network to gain revenues of around $40m in 2021, an increase of more than 100 per cent year-on-year, on the back of the US’s expanding sports betting market.
Better Collective said in a statement: “With the acquisition of Action Network, Better Collective gains clear market leadership within sports betting media and affiliation in the US and now expects to increase its revenues in the US to more than $100m by 2022.”
Action Network will continue to operate as a separate business unit.
Better Collective will pay the majority of the deal in cash, which will be provided through bank financing. Some $12m will be paid through the issuance of new Better Collective shares to Action Network’s management, key employees and some other individuals.
Sports betting generated revenue of $1.5bn in the US in 2020 and, according to a report from research firm Eilers & Krejcik Gaming, will generate $5.8bn by 2023.
Better Collective’s shareholders recently approved the appointment of Therese Hillman to the company’s board. The company has made several acquisitions in the last year, including acquiring Swedish online sports betting media platform Rekatochklart.com for €3.8m in March.