Raketech completes the acquisition of A.T.S. Consultants Inc operations

Raketech has identified several growth and development opportunities for the acquired assets, such as the implementation of Raketechs technology infrastructure and introduction of affiliate marketing sales in all licensed states in the US. As previously announced, as a result of the acquisition, Raketech is expected to reach over EUR 50m in annual revenue with an EBITDA margin exceeding 40%.

Oskar Mühlbach, CEO of Raketech said: “With all formalities now successfully closed I look very much forward to combining our commercial models and to share technology and know-how between our teams to address the so important US market. As a matter of fact, with this acquisition, over 20% of our revenues is expected from the US already during Q1 of next year, putting us in a good position in the rapid growing US market. Furthermore, I am happy that we through this acquisition strengthen our US organization with a strong local team with extended knowledge within the US sports industry. I am confident that together with the A.T.S. team we will be able to accelerate the growth of our market share in the US sports industry.”

The agreed purchase price amounted to USD 15.5m on a cash and debt free basis, settled in a cash payment of USD 12m as per Closing and an additional cash payment of USD 1m six months post-closing. The remaining part of the purchase price of USD 2.5m will be settled through Raketech shares with a 36-month lock-up period. There is a possibility to additional earnout payments based on certain performance measures 36 months post-closing. The purchase price represents a multiple of approximately 6x EBITDA and 2.5x revenues for the last twelve months.

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