Catena Media Acquires US Online Gambling Assets
Online lead generation company Catena Media has entered the regulated US online gambling market by confirming the acquisition of licensed affiliate website assets from three separate US founders.
Catena Media governance, specifying acquisition details, stated that it has agreed to pay an upfront cash and shares deal valued at €15 million, with 25% of the deal being settled through a distribution of a total of 440,669 new shares in its business.
As a further deal incentive, based on revenue performance of the assets over a three-year period, it has placed a $45 million cap earn-out.
Catena stated that its new assets would contribute directly to corporate performance, and further detailed that the acquired websites had an estimated revenue €1 million per quarter, with a 75% operating margin.
The revenues generated stem from licensed operators in the regulated Casino and Poker markets in the states of Nevada and New Jersey. It is estimated that following the acquisition, close to 50% of Catena Media’s revenue will be derived from regulated markets.
While Catena governance did not disclose the name of individual assets, it did confirm that playnj.com and USPoker.com are among its acquired US online websites.
Commenting on the US acquisitions. Catena Media CEO Robert Andersson said: “We are very excited about this opportunity, which will not only see Catena Media becoming the largest regulated casino affiliate in the US, but also puts us in pole position to take advantage of further re-regulation in what has the potential to become the world’s largest iGaming market. This is an important step in realizing our vision to become the world´s number one provider of high-value iGaming leads.”
This year has seen Catena Media move to increase its international affiliate network as the company moves to extend its player marketing footprint in regulated iGaming and betting markets. This month, Catena confirmed its £10 million acquisition of leading UK player portal Casinouk.com.
Website co-founder and seller to Catena Media, Aaron McCann, commented: “We are impressed with Catena Media and are excited to join their strong and experienced team, which will enable us to take advantage of the many strategic and 2 D-2452017-v2 financial benefits expected from the regulation in the US. We look forward to continuing the journey we have started, and Catena Media is a great match for us.”
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