Gambling.com Completes Acquisition of Freebets

Article by : Erik Gibbs Apr 8, 2024

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Gambling.com Group has successfully finalized its acquisition of Freebets.com and associated assets from XLMedia, as previously disclosed. Last month, the digital marketing and player acquisition services provider revealed its plans to acquire XLMedia’s European and Canadian sports betting and gaming assets, encompassing prominent affiliate gaming platforms such as Freebets.com, WhichBingo.co.uk, Nettiskasinot.com and Vedonlyonti.com.

On April 2, the company officially confirmed the completion of the deal. The acquisition entails a total consideration between $37.5 million and $42.5 million.

$20 million was disbursed upon closing, with an additional $10 million scheduled for payment six months after the date of the closure. Furthermore, between $7.5 million and $12.5 million will be paid on the first anniversary of the closure, contingent upon the assets’ revenue performance for the remainder of 2024.

Gambling.com Group foresees these assets yielding revenue of approximately $10 million and an incremental adjusted EBITDA of around $5 million throughout the remainder of 2024.

Charles Gillespie, CEO and Co-Founder of Gambling.com Group, emphasized that while much attention is directed toward the gambling expansion in the US, Europe remains a cornerstone of the industry with its established markets. He believes that the acquisition will significantly alter the European online gambling affiliate sector, enabling Gambling.com Group to expand further into existing European markets as well as new ones.

Moreover, Gillespie mentioned that the transaction brings aboard a new group of colleagues to the team in the region. He expressed excitement about integrating them into the company, sharing their advanced technology platform and cultivating a culture of excellence among the new team members.

In retrospect, 2023 marked significant financial milestones for Gambling.com, with a remarkable surge in revenue by 42.1% to $108.7 million compared to the previous year. This impressive growth trajectory was further bolstered by substantial increases in adjusted EBITDA and net profit.

Notably, the final quarter of 2023 proved to be a watershed moment, witnessing record-breaking revenue of $32.5 million, which soared by 52.6%. In its financial report unveiled on March 21, Gambling.com attributed this performance to a series of strategic acquisitions and expansions throughout the year.

Of particular note were the successful launches in Ohio and Massachusetts, alongside the addition of Casinos.com to its expanding portfolio of branded websites. These acquisitions, complementing established platforms like Bookies.com, RotoWire.com and the flagship Gambling.com site, played a pivotal role in fueling the company’s growth.

With a footprint now spanning more than 50 websites across 15 national markets, Gambling.com has solidified its position as a dominant player in the online gambling industry.

XLMedia announced a strategic shift to prioritize shareholder value from its North American business, not included in the sale. Despite revenue challenges in 2023, proceeds will aid asset transition, settle obligations and bolster working capital for North American operations.

Surplus funds will also be returned to shareholders. Chair Marcus Rich expressed confidence in the sale’s transformative impact, valuing it at double the current market capitalization.