Raketech strengthens its position in the US with sport acquisition

The agreed purchase price amounts to USD 15.5m (EUR 13.4m) on a cash and debt free basis. The purchase price will be settled in a cash payment of USD 12m (EUR 10.4m) as per Closing and through an additional cash payment of USD 1m six months post Closing. The additional purchase price will be settled through issuance of new Raketech (RAKE) shares amounting to USD 2.5m (EUR 2.1m). The number of Raketech shares issued will be determined by the volume-weighted RAKE share price 30 trading days prior to the date of the Closing. Further, the issued RAKE shares will be subject to a lock-up of 36 months following completion of the transaction. The purchase price represents a multiple of approximately 6x EBITDA and 2.5x revenues for the last twelve months, with the possibility of additional earnout payments based on certain performance measures 36 months post closing.

The acquisition complements Raketech’s US asset portfolio and includes 20 employees in Baltimore. The business model which is based on user subscriptions and sale of picks (tips) will furthermore be complemented with all of Raketech’s existing marketing services such as traditional affiliation, media sales and CRM. The A.T.S. team will continue to operate from Baltimore, led by A.T.S. current CEO Jordan Abrams and form Raketech’s local office in the US.

Oskar Mühlbach, CEO of Raketech said: “I am thrilled that we are able to follow up the latest acquisition of P&P Vegas Group with yet another strategically important acquisition in the US. This market is of specific interest to us as it is expected to grow substantially within the next years. And I believe that adding Raketech’s commercials and operational ability to the acquired assets is a great way to maximize this opportunity”.

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He continues: “I am also excited to have the talented A.T.S. team on board, and I am looking forward to combining our commercial models and to share technology and know-how between us. Furthermore, as Raketech already offers sports insights and betting tips in the US, there are obvious opportunities to cross-promote and collaborate across our ecosystem of assets to provide even better service to the end user as well as even better marketing opportunities for our clients, the operators”.

The acquisition will be closed no later than December 15th 2021 and be settled using Raketech’s current cash together with funding from Raketech’s credit facility.