Gambling.com targets US scale with BonusFinder acquisition worth up to €60m
Affiliate hails “immediately accretive” cash-plus-shares deal as springboard for greater US growth
Gambling.com Group has agreed an initial €12.5m ($14m) cash-plus-shares deal to acquire online gambling bonus comparison site BonusFinder.
The Nasdaq-listed affiliate will pay €10m in cash with the remaining acquisition costs of €2.5m being made up of newly issued unregistered ordinary shares in Gambling.com Group.
It is understood the cash portion of the acquisition cost was satisfied through existing Gambling.com Group available cash on hand.
In addition to the shares, BonusFinder shareholders are also in line to receive earn out payments based on the financial performance of the acquired assets in 2022 and 2023.
Based on Gambling.com Group estimates, the total potential consideration is expected to be €41m, implying a multiple of under 3.5 times expected 2023 revenue. However, if performance related targets are met, the maximum total consideration could rise to as high as €60m ($67.6m).
Gambling.com Group also has the option to pay up to 50% of each of the earnout payments in unregistered ordinary shares at its sole discretion.
“The acquisition of BonusFinder supports Gambling.com Group’s overarching growth strategy of rapidly expanding its North American footprint and is expected to be immediately accretive,” Gambling.com Group said in a statement confirming the deal.
“Canada is currently BonusFinder’s largest market, strategically positioning the Group for the expected expansion of the regulated online gambling market, beginning with the province of Ontario.
“BonusFinder also has traction in the United States, where the Group expects to be able to accelerate their growth in the coming years,” the firm added.
Gambling.com Group CEO Charles Gillespie highlighted the impact BonusFinder’s team have had on pushing the business forward since its inception.
“Over the past five years, Fintan Costello and his team have developed a professional, industry-leading, performance marketing business with a customer-centric and brand-driven approach,” Gillespie explained.
“The acquisition of BonusFinder gives Gambling.com Group additional scale in the North American online gambling market,” he added.
BonusFinder publishes online portals which help consumers find and compare bonuses for online sportsbooks and casinos, the same fundamental business model as Gambling.com Group, and something that was cited as “complementary” by BonusFinder chairman Fintan Costello.
“Gambling.com Group has demonstrated its leadership position within the online sports betting and iGaming industry, and its proprietary technologies and experience will provide BonusFinder with the tools to maximize growth in this exciting new era of North American regulation,” Costello added.