Better Collective closes $240m Action Network acquisition

News  /  Published 31 May 2021  / 

Better Collective has closed its $240m acquisition of the Action Network, the largest deal in the super-affiliate’s history.

The deal was announced at the start of this month. Of the $240m price, the vast majority will be paid in cash, alongside $11.4m in new Better Collective shares, issued at a price of SEK231.35 per share. Of the cash payment, $10m is deferred.

“We are excited to finalize the acquisition of Action and to formally welcome its employees to the Better Collective Group,” Jesper Søgaard, co-founder and chief executive of Better Collective, said.

“This acquisition gives us a leading position within sports betting media in the US and a strong foundation for profiting from the continuous regulation of the US betting market.”

The Action Network will continue operate independently under the Better Collective umbrella, with Patrick Keane continuing to serve as chief executive, reporting to Better Collective US CEO Marc Pedersen.

The business has commercial partnerships with US sportsbooks such as BetMGM, DraftKings, FanDuel and PointsBet, and when it announced the deal, Better Collective said Action expected to report revenue of approximately $40.0m for its 2021 fiscal year.

Better Collective said group revenue, meanwhile, would rise from around $192.6m to more than $216.7m thanks to the deal, while operating profit could climb from approximately $60.2m, to in excess of $66.2m.

“With Better Collective’s experience and capabilities, we have the resources to continue growing our already leading sports betting product and media business, in order to ultimately enhance the betting and entertainment experience for sports fans in the US,” Keane said.

“I’m pleased that Action now officially joins the Better Collective Group and look very much forward to the journey ahead.”

Earlier this week, Better Collective raised SEK1.50bn (£127.9m/€147.9m/$180.3m) through a directed share issue, which it said would provide the flexibility to help it continue to pursue acquisitions.

 

Source: iGB North America