Acroud AB (publ) (“Acroud”) has signed Letter of Intent (“LOI”) regarding the acquisition of a European based media company within Sports Betting (”The Target”) for an initial purchase consideration of approximately EUR 5.0m. The Target is a fast-growing company offering a software based tipster service as well as some very popular video content within Sports Betting, Poker and Horse Racing. The Target has a clear “strategic fit” with Acroud strengthening our software offerings (SaaS) as well as adding some of the most popular ways of consuming media, YouTube and Twitch.
The Target generated sales of annualized sales of app EUR 1.4-1.5m based on the 9 month period Q220-Q121 with an EBITDA margin of approximately 60% reaching an EBITDA of EUR 0.9 – 1.0m. The agreement comprises a total initial purchase consideration of approximately EUR 5.0m on a cash- and debt- free basis, and an earn-out consideration, which is contingent on the EBITDA achieved in 2023. The acquisition is subject to a final board approval and the parties entering into a definitive purchase agreement. The consideration is planned to be paid 50% in cash and 50% in newly issued Acroud shares.
The Target main revenue source is through its “software based tipster service” as well “traditional” affiliation revenue generated by high quality online video content. The Target has only revenues from regulated markets and sees great potential for geographical expansion.
This potential acquisition fits well to our strategy, and we see significant synergies and expansion possibilities down the line. With that said the Target current growth rate is, stand-alone impressing. With the Target we will rapidly expand our streaming offering and rich content throughout our global network and other business lines.
The acquisition of the Target is in line with the previously communicated new strategy. Together with the previously communicated acquisitions, the Target positions Acroud as not only a leading affiliate within Casino, Sport Betting and Poker, but also it strengthens our position on the market as a SaaS provider.
With the Target business, Acroud sees not only a strong financial growth driver but also significant synergies across the future operational organization. More information will be released when a transfer agreement is signed. The acquisition is expected to be finalized in the first half year of 2021.
”This is another important piece in the puzzle to move Acroud strategically forward in the direction to become “the Media House of the Future” and a fast-growing global challenger in digital media and software services. The acquisition together with the other recent acquisitions are together transformative for Acroud’s operations and we now aim to complete and integrate them. The focus will thereafter be on operational excellence and develop the new Acroud together with our new team and partners on the exciting journey ahead” Robert Andersson, President and CEO, Acroud
This information constitutes inside information that Acroud AB (publ) is required to disclose under the EU Market Abuse Regulation 596/2014. The information in this press release has been published through the agency of the contact persons below, at the time specified by Acroud AB’s (publ) news distributor Cision for publication of this press release. The persons below may also be contacted for further information.
For further information, please contact:
Robert Andersson, President and CEO
+356 9999 8017
Gustav Vadenbring, CFO
+356 9967 6001
|ACROUD AB (publ)|
|Telephone:||+356 2132 3750/1|
About ACROUD AB
ACROUD owns, operates and develops high-quality comparison sites, mainly in iGaming affiliation, for the purpose of helping our partners by channelling high-quality users to the Company’s customers – primarily iGaming operators. Through the sites, ACROUD generates high-quality users, primarily to global iGaming operators. The Company, which was founded in 2003, has just over 70 employees and is headquartered in Malta. The share (ACROUD) is listed on Nasdaq First North Growth Market. Certified Adviser: FNCA Sweden AB, [email protected], +46 8 528 00 399