Danish betting analytics publisher, Better Collective A/S (BC), is set to significantly increase its presence in the growing American iGaming market after announcing a deal to gradually acquire local online sportsbetting and daily fantasy sports (DFS) news provider Rical LLC.
The Copenhagen-headquartered firm is a developer of digital platforms for the global betting tip, bookmaker information and iGaming communities and it used an official Tuesday press release to reveal that the arrangement will see it having assumed complete stakeholder control of Rical LLC by the end of 2024.
Established in 2004, Better Collective A/S detailed that the arrangement is to initially involve it paying some $21 million in cash and shares for a 60% stake in the firm behind the sportsbetting and DFS information domains at RotoGrinders.com, SportsHandle.com, PocketFives.com, PennBets.com and USBets.com. The Stockholm-listed enterprise moreover explained that the three years from the start of 2022 are to see it acquire the remaining 40% interest in its target at a price to be based upon a multiple of the pair’s future American earnings before interest, tax, depreciation and amortization.
Jesper Sogaard, Chief Executive Officer for Better Collective A/S, used the press release to state that the arrangement follows last year’s decision by the United States Supreme Court to invalidate the Professional and Amateur Sports Protection Act (PASPA). He declared that this ruling removed the controversial federal ban on sportsbetting and subsequently permitted numerous states including New Jersey and Pennsylvania to legalize the activity.
Sogaard’s statement read…
“Since PASPA was repealed by the United States Supreme Court last year… we have assessed various acquisition opportunities, searching for access to strong products and dedicated people with insight into this market. We strongly believe that we found exactly that in [Rical LLC], where we see a strong and dedicated management team and talented employees.”
BC disclosed that the acquisition deal is to involve the remaining 40% stake in Rical initially remaining in the hands of the Nashville-based enterprise’s three founders and ‘certain key employees’. It also divulged that this team is to continue managing all of the target firm’s day-to-day business from its current headquarters while assisting in the subsequent consolidating of all account information.
Read the statement from Sogaard…
“Management and key employees remain shareholders in [Rical LLC] for the coming years, in which the United States market is expected to unfold, whereby management and key employees on the one side and Better Collective A/S on the other to a large extent share the potential risks and upside. We are truly excited about this opportunity.”
For his part, Calvin Spears, Chief Executive Officer for Rical, proclaimed that the arrangement is to help his firm to ‘fully realize the potential we’ve created with the RotoGrinders.com network’ and better take advantage of coming marketing opportunities in the United States.
Spears’ statement read…
“We feel Better Collective A/S is the perfect partner for us as this opportunity unfolds. The experience, resources and technology it has built up over the past 15 years in European sportsbetting will prove incredibly valuable here. Our combined goal is to be the largest United States sportsbetting affiliate and we’re in a great position to make it happen.”