M&A: Better Collective pays $54 million for acquisition of Playmaker
Leading digital sports media group, Better Collective, will increase its content production with the acquisition of American sports media company Playmaker HQ. The acquisition, valued at? (US) $54 million, of which (US) $15 million will be settled upfront, marks a significant move in Better Collective’s strategy to become the leading player in the digital sports media space.
Playmaker reaches more than 500 million users
Headquartered in South Florida, Playmaker HQ is a renowned sports and entertainment media platform. Its expertise lies in delivering original sports and entertainment content, collaborating with athletes and creators to target the US market.
The company currently distributes over two thousand monthly pieces of sports content across popular platforms such as Instagram, TikTok, Twitter, Snapchat, and YouTube. With a massive base of more than 20 million followers, Playmaker HQ’s content reaches over 500 million users each month.
The company has also secured partnerships with top brands in the sports accessories and fast-moving consumer goods industries, earning recognition through prestigious awards and film festivals.
(Source: SiGMA)
The acquisition will be classed as an asset purchase, which is expected to yield favourable tax deductions for Better Collective’s acquisition. Cash will be the primary funding source, with the option to allocate a portion of the earn-out payments in Better Collective shares. The consolidation of Playmaker HQ into Better Collective’s accounts will take effect from July 3, 2023. The group’s financial targets for 2023 remain as expected.
Marc Pedersen, CEO of Better Collective North America, expressed enthusiasm about the transaction, highlighting Playmaker HQ’s access to millions of sports fans in the US, a majority of whom are new to Better Collective’s user base. Pedersen emphasized the company’s commitment to enhancing the betting experience for fans’ sports and leveraging Playmaker HQ’s expertise to expand product offerings and revenue streams across Better Collective’s global portfolio.
Transaction details
Playmaker HQ is experiencing rapid growth, with a revenue target exceeding (US) $10 million in 2023 and an EBITDA margin of 20-25 percent.
Under the terms, Better Collective will pay (US) $54 million on a cash and debt-free basis. This includes an upfront cash consideration of (US) $15 million, with an additional (US) $1 million in deferred payments, and performance-based earnout payments of up to (US) $38 million over a three-year period.
Playmaker HQ must generate accumulated revenues exceeding (US) $75 million with operational earnings (EBITDA) exceeding (US) $25 million during the first three years post-acquisition to unlock the full earn-out payment.
Better Collective’s ongoing M&A strategy has made a significant impact on revenues and performance (Source: SiGMA)
Better Collective solidifies its position in digital sports media
Brandon Harris, CEO of Playmaker HQ, said that the deal with Better Collective is ‘a significant milestone’. Harris emphasized the potential to create exceptional content, experiences and opportunities with the support of Better Collective’s world-class team. This will enable the company to reach a broader global audience of sports fans, aiming to build the world’s leading sports media group.
In 2018, Better Collective went public on the Nasdaq Stockholm Stock Exchange and was the first iGaming company to get a main market listing without external investment.
Better Collective trades on the Nasdaq Stockholm as XSTO:BETCO
