Better Collective inks record acquisition with $240m Action Network deal
Copenhagen-based affiliate targets US revenue of more than $100m by 2022
Better Collective has acquired US sports betting media platform Action Network for $240m in the affiliate’s largest ever M&A deal.
The acquisition will be completed via cash payment and a $12m issue of new Better Collective shares to Action Network management and key employees.
The cash payment will be provided through bank financing, although $10m will be paid on a deferred basis to settle certain existing share options in Action.
The newly issued Better Collective shares will be subject to a lock-up restriction on any share sales of between six and 24 months after the completion of the transaction, which is scheduled to take place in Q2.
Better Collective is understood to have fought off rival bids amid interest from US heavyweight DraftKings and private equity funds.
The Copenhagen-based affiliate said the acquisition would help grow US market revenue to more than $100m by 2022.
Action Network will slot into the Better Collective US portfolio alongside VegasInsider and Scores and Odds.
The brand will continue to operate as a separate business with its current brands, management team and employees led by CEO Patrick Keane. Keane will report into Better Collective US chief Marc Pedersen.
Better Collective CEO Jesper Søgaard said he was thrilled to welcome Action Network and its employees to the US division.
“We’ve added three new, very well-positioned US sports media brands to our portfolio and welcomed around 100 new colleagues, together representing an invaluable pool of knowledge and expertise on the US sports betting media market.
“By all accounts, this is a great day for Better Collective,” Søgaard added.
Better Collective has said certain parts of the Action Network business will be integrated where necessary to generate cost efficiencies.
Action Network CEO Keane hailed the multi-million-dollar deal as a great achievement for the firm, which triggered an investment spree in December of last year.
“In just a few years, our team has managed to build a leading sports betting product and media business in the US market, making us attractive to a leading international player,” Keane explained.
“I am thrilled about this outcome for our employees and investors and we look forward to continuing to forge great relationships with our league, media and sportsbook partners.
“Under Better Collective’s ownership, we become part of a company with many years of experience and all the resources necessary to further grow our position and develop our offering, to ultimately enhance the betting and entertainment experience for sports fans.
“We gain new colleagues, career paths and perspectives. I’m looking very much forward to the journey ahead,” he added.
In wake of the announcement, Better Collective updated its financial targets for full-year 2021 by increasing estimated total group revenue to €180m and operational profit to €55m.
Better Collective’s share price increased by more than 17% in trading on Nasdaq Stockholm to SEK270 ($31.82).