Malta-based performance marketing partner Raketech has acquired P&P Vegas Group for €16 million, it announced on Wednesday, in a drive to strengthen its sports footprint on the US market.
With the acquisition, the company will receive assets such as the US betting tipster community Picksandparlays.net, and those of QM Media AB, including leading cricket betting website Onlinecricketbetting.net, which predominant serves the Indian market.
As a result of the acquisition, Raketech expects its revenues originating from the US to approximately double, and those from India to reach five to 10 per cent of the group’s total in Q4 of this year.
Additionally, it predicts that by the same quarter, its sports vertical will reach approximately 30 per cent of its total revenues in Q4 of the year.
The deal is funded on a cash and debt-free basis and will be settled in a cash payment of €9 million as well as an issuance of 3,881,968 new Raketech (RAKE) shares amounting to €7 million.
Through the acquisition of P&P Vegas Group, headquartered in Ohio, Raketech says it will be reinforced with a network of sports betting experts and a local team of six FTEs, bringing valuable knowledge about the local US sports market to the group.
Picksandparlays, with its strong presence in social media, web and video has provided high-quality sports betting content in the US market for over a decade and attracts around half a million unique monthly users, Raketech recounts.
Addressing the deal, Oskar Mühlbach, CEO of Raketech said: “With these acquisitions, we are delivering on several strategically important goals. Significant sports revenues, revenues from high growth markets, boots on the ground in the US and asset diversification and new revenue streams”.
Additionally, he welcomed the “talented and committed team” that will come with the acquisition, saying: “I am very much looking forward to having them join forces with our central operations team to accelerate growth even further”.
Discussing the acquisition of QM Media, the company said considering that the popularity of Cricket is growing globally with India being one of the most important markets, the brand holds the position as one of the largest cricket sports betting affiliates with an “impressive track record of profitable growth”.
Marcus Egstam, CEO of QM Media said: “By partnering with Raketech we gain access to their well-established infrastructure that will help leverage our strong brands and market positions. We are enthusiastic to become shareholders in Raketech and to be a part of the exciting future we have planned”.
The acquisition will be settled as at market close on 15th September 2021, and the employees of P&P Vegas Group will become integrated parts of the Group at the same time.
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