Better Collective Acquires Canada Sports Betting for More Than $23 Million
Better Collective made a power move earlier this week, acquiring Canada Sports Betting’s assets for $23.5 million. The strategic acquisition will bolster Better Collective’s entry into the Canadian sports gambling space. The move also prompted Better Collective to alter its financial aims for the current fiscal year.
Better Collective, based in Denmark, has 635 employees and subsidiaries ranging from The Action Network to Betting Sites Ltd, HLTV.org and more. Better Collective is a publicly owned company that trades under the symbol of BETCO.ST.
The acquisition was announced just ahead of Ontario’s online sprots gambling debut on April 4. Better Collectives anticipates revenue generation of more than $5 million stemming from online sports wagering throughout the remainder of the current year. Add in the fact that several other provinces in Canada are likely to follow suit with the legalization of online sports gambling in the spring and summer and there is even more reason for investors to be bullish about the future of sports gambling investing.
Canada Sports Betting Background
Canada Sports Betting, commonly referred to with the acronym of CSB, provides sports-lovers with the opportunity to wager on sports events on the internet. The company tailors its sports betting options to its clientele’s desires. CSB also provides information pertaining to sports and sports gambling as a whole. The company’s offerings also include odds suggestions, reviews of sportsbooks and player bonuses.
Crunching The Numbers Of The Deal
Let’s take a closer look at the financial side of the deal. The $23.5 million paid to acquire CSB was highlighted by an upfront cash payment of more than $16 million. More than $6 million will be provided in the form of a deferred payment in accordance with deliverables across the ensuing three months.
Better Collective representatives noted its credit lines provided by Nordea Bank have been escalated by more than $100 million, greasing the wheels of potential additional acquisitions all the more. The hike in credit lines will also facilitate the CSB acquisition, providing a financial buffer that expedites the deal and ultimately proves mutually beneficial for CSB, Better Collective and Nordea Bank.
Better Collective’s CEO Makes A Statement
The CEO of Better Collective, Jesper Sogaard, made a statement after the announcement of the acquisition, commenting how he is happy to have CSB in the company’s portfolio of products. He also noted how the acquisition provides a solid foothold within the country’s sports gambling market that is quickly developing. The addition of new websites along with additional support from North American business partners will help Better Collective fulfill its mission to serve as Canada’s sports gambling flagship brand.
Better Collective’s North American presence already includes industry power players such as VegasInsider and Action Network. The CSB acquisition positions the company to become the top affiliate network in Ontario and possibly a slew of additional Canadian provinces down the line.
If current financial forecasts hold true, Better Collective’s sports gambling business in Canada will catalyze revenue grater than $5 million in the ensuing nine months of the year. The company also changed its financial aims for the fiscal year ending in 2022, setting anticipated corporate earnings at more than $80 million. Better Collective’s EBITDA corporate earnings for the current fiscal year were set at a target of slightly more than $75 million prior to the CSB acquisition.