The acquisition strengthens Acroud's position in the streaming and SaaS in sports betting and poker
Acroud has announced that they acquired 100% of shares in Swedishsantas AB, TheGamblingCabin, from Swedishsantas Media AB. The deal is said to be on a cash and debt free basis worth an estimated SEK 47.3million.
In TheGamblingCabin, Acroud has acquired a fast-growing company that offers a software based tipster service. Moreover, they also generate traditional affiliation revenue through their engaging content that focuses on sports betting, poker and horse racing. An added bonus to this deal is that TheGamblingCabin only generates revenue from regulated markets and they are eyeing geographical expansion.
The two companies fit strategically well together as Acroud has now strengthened their software offerings, while also adding popular social media platforms, Youtube and Twitch, to their arsenal. The pace at which TheGamblingCabin is growing has certainly impressed Acroud to pursue this acquisition.
Therefore, it is safe to say that Acroud's new acquisition will not only position themselves as a leading affiliate within the iGaming industry but it will also enable Acroud to establish themselves among major SaaS provider players.
CEO of Acroud, Robert Andersson, stated in a previous announcement, the importance of such an acquisition:
”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”
Meanwhile, CEO & Head of Content at TheGamblingCabin, Bengt Sonnert, stated how becoming part of Acroud was such an easy choice:
"To become a part of Acroud was actually nothing that we even thought about initially, but the more we understood what Acroud is building it felt as an easy choice. They share our visions and provide us with new and greater possibilities to bring our business to the next level."
- Transaction is in line with Acroud's long term strategy
- In-line with previous acquisitions and will increase Acroud's profitability and revenue
- Increase in product diversification and market share via new verticals and media channels
- Leads to a lower risk profile with more stable revenue generation and profitability
- Cash and debt free basis = SEK47.3million
- Estimated SEK23.6million paid upfront through 7,709,202 Acroud Shares - subscription price of SEK3.07/share (matching to EU 0.30 per share)
- 50% of the Acroud Shares (7.7million) will be subject to one year lock-up
- Other 50% of those shares are subject to a two year lock-up
- An estimated amount of SEK 23.6million will be paid in cash
- Additional considerations can be paid based on a multiple of 5x the EBITDA that is generated from 1 Apr 2022 to 31 March 2023 - reduced with an annual EBITDA based on Q2 for 2020 and Q1 for 2021 (Earn-Out Consideration Shares).
- The price of the Earn Out Consideration Shares will be equivalent to the average price of the Acroud share on NASDAQ First North Growth Market for the 30 consecutive calendar days prior to 1 April 2023.
- The Earn-Out Consideration amounts to a maximum of an estimated SEK 82million.
Whether you’re a startup looking for seed investments or an established company looking for an exit, we’ve got your back! We’ll connect you to the right people to make sure you’ll get the best evaluation for your business. What’s more, we won’t charge you a dime for this consultation! Let us help, sign up here.