Better Collective completes 100% buyout of RotoGrinders in €33m deal
Copenhagen-based business accelerates process to purchase remaining 40% of shares in US-focused sports betting and DFS affiliate
Better Collective has chosen to purchase the remaining 40% share in its US-based sports betting affiliate brand RotoGrinders for €33m following strong growth in the business.
The acquisition of the remaining shares will be paid through €22m in cash, with the remainder to be paid in either Better Collective shares or cash at a date no later than 31 December 2021.
The original 60% share was acquired in 2019. The new deal brings the overall expected transaction price for 100% of the shares in RotoGrinders to €51m, or 7.5 x 2021 EBITDA.
The purchase price of the remaining shares is dependent on financial performance in 2021 and the final price will be adjusted once the full-year 2021 results have been released.
Since the 2019 acquisition, revenue has more than doubled and EBITDA is more than four times higher over the same period, primarily driven by sports betting brands sportshandle.com and usbets.com, as well as DFS growth from its flagship RotoGrinders.com site.
Five of seven of the original founders and shareholders of the RotoGrinders Network will remain employed by Better Collective, while two will continue in advisory roles.
Marc Pedersen, CEO of Better Collective US, said he was pleased to settle the full acquisition of RotoGrinders earlier than originally planned. The remaining shares option did not expire until 2024.
“Since the initial acquisition, we have been impressed with the RotoGrinders team and we are excited to now welcome them to the broader Better Collective family and pursue all synergies to the fullest.
“Furthermore, we are pleased to keep the now previous shareholders in RotoGrinders engaged in Better Collective with the opportunity to benefit from their competences more widely in the organisation,” he added.
RotoGrinders CEO Cal Spears added: “Joining Better Collective a few years back helped us fully unlock the potential of the RotoGrinders network.
“We’re proud to announce that our significant growth has led to an accelerated acquisition and that our team of more than 50 will be fully integrated into Better Collective US going forward.”