Catena Media offloads UK and Australian assets in €6m deal
Affiliate sanctions sale to Moneta Communications as it continues on North America charge
Catena Media has sold its UK and Australian online sports betting affiliate assets to Moneta Communications for €6m.
The deal will see the Stockholm-listed firm dispose of its UK business, which includes Squawka and GG.co.uk, and all the shares in the group’s wholly owned Australian subsidiary.
Catena Media acquired Squawka in December 2017 in a £1m deal as part of its previous M&A strategy which saw it snap up a slew of smaller affiliate firms.
The deal represents a continued push in Catena Media’s strategy to fully focus on the North American market.
The company offloaded its AskGamblers brand to GiG in a €45m deal last year after shedding its Europe-facing workforce.
Breaking down the sale of its UK and Australian assets, Moneta Communications will pay €5.8m in cash upon the closing of the deal, with the remaining €200,000 to be paid within 75 days of that date.
Following an impairment charge of €15.2m arising from the sale, the UK and Australian assets had a net book value of €6m as of 30 June.
The combined businesses generated revenue of €4.5m and EBITDA of around €900,000 in the year to date.
Catena Media said funds from the sale would primarily be used to repay its existing debts. The affiliate noted the sale would reduce its group cost base by estimated €2.8m per year.
The deal is expected to complete in Q3.
Moneta Communications was acquired by Seven Star Digital in October 2022.
Seven Star Digital, which is a subsidiary of OneTwenty Group, swooped for Moneta and its associated brands, which include Horseracing.net and Bettingodds.com.
Michael Daly, Catena Media CEO, said: “This agreement is another milestone on our journey to focus the business on the North American online sportsbook and casino affiliation market.
“The strategic review has led us to reshape our brand portfolio to reflect this closer operational focus, and I am pleased to be delivering further progress in that direction.
“I am also delighted that we have found a buyer that is well placed to build on the success of our UK and Australian sports and casino brands and will offer them the scope and support they need to develop and grow,” he added.
Christopher Russel, Moneta Communications CEO, commented: “We are happy to have acquired these established and successful brands from Catena Media.
“This acquisition allows Moneta Communications, as part of the OneTwenty Group, to further our plan to acquire fan-focused, profitable digital media assets that cover major sports in important markets. We are excited to further develop and grow the assets and the team.”