American digital marketing services provider Gambling.com Group Limited has announced the signing of a definitive agreement worth $27.5 million that will see it acquire the operator behind the RotoWire.com fantasy sports news and advice domain, Roto Sports Incorporated.
The Nasdaq-listed firm used an official Monday press release to declare that it hopes to finalize the cash-and-shares transaction early in the new year ‘subject to customary closing conditions’ with $7.5 million of the ultimate purchase price being deferred until the end of 2024 so as ‘to create immediate accretion’ for its next set of annual financials.
Gambling.com Group Limited asserted that the arrangement will allow it to accelerate its growth into the burgeoning American sportsbetting market via the purchase of ‘a leading nationally-syndicated sports news and information service’. The buyer moreover pronounced that it subsequently intends to leverage the existing audience, workforce, content, partnerships and reputation of RotoWire.com to ‘drive substantial incremental affiliate revenues’ while working to significantly expand the popular innovation’s already extensive selection of tools and information.
Charles Gillespie serves as the Chief Executive Officer for Gambling.com Group Limited and he used the press release to proclaim that Roto Sports Incorporated has ‘produced some of the best fantasy sports content in America’ over the course of the last 25 years to embed its operations ‘into the heart of the American sports experience’. The boss furthermore disclosed that the final purchase price is to encompass a tranche of newly-issued shares worth in the region of $5 million alongside cash payments of $2.5 million and $5 million due in 2023 and 2024 respectively.
Read a statement from Gillespie…
“We will commence work on expanding sportsbetting content and tools across RotoWire.com’s digital assets straight after closing. We believe that the combination of our two complementary businesses will be immediately accretive to our fiscal 2022 earnings and establish a foundation for a leadership position in United States sportsbetting, which will drive near-term and especially long-term value creation for our shareholders.”
For his part and the President for Roto Sports Incorporated, Peter Schoenke, used the press release to explain that his firm’s mobile-friendly RotoWire.com service had chalked up more than 100,000 paid subscriptions alongside in excess of 17 million unique web visitors over the course of the past twelve months. The former Chairman of the Fantasy Sports and Gaming Association additionally noted that the innovation’s content regularly reaches even more sportsbetting aficionados through a number of distribution agreements his company holds with a range of American sports media organizations.
Schoenke’s statement read…
“The United States is entering a whole new world of sports fandom and combining forces with Gambling.com Group Limited will accelerate RotoWire.com’s growth. Gambling.com Group Limited’s resources and experience will help RotoWire.com rapidly advance its sportsbetting offerings to take full advantage of this new era.”