Sports betting site ParisSportifs has had all affiliate assets acquired by Catena Media, as the firm continues its strategic expansion, with an eye on this summers Russian World Cup.
Entering the French market through the purchase, with the initial price amounting to an upfront payment of €8.2m, the assets are set to be consolidated within Catena during this month.
Of that initial payment, €6.2m will be paid in cash and the remaining €2m in newly issued shares, whilst there is also an earn-out of a maximum of €5.7m, based on revenue performance over the period of one year, which in a “reasonably expected scenario” would see a total earn-out payment of €3.2m.
In its statement, the firm detailed “the sellers would need to generate revenue growth of between 40 and 60 percent during the earn-out period of one year. Up to 50 percent of the earn-out may be paid with shares in Catena Media plc.”
Henrik Persson Ekdahl, acting CEO of Catena Media, commented: ”I am very proud that we are now entering the regulated French market through this strategic acquisition of ParisSportifs. This is in line with our growth strategy and strengthens our leading position in Europe. It’s also a strategic move for us, bringing growth in sports betting with the FIFA World Cup just around the corner.”
Announcing the acquisition, Catena further stated: “The shares will be issued at a subscription price of SEK 120,97 per share, corresponding to the volume-weighted average price for Catena Media’s shares on Nasdaq Stockholm during a period of 30 trading days up to and including 12 April 2018.
“This means that a total of 170,221 shares will be issued, corresponding to approximately 0,3 percent of the shares and votes in the company. The shares will be subject to a lock-up period of six months effective from the closing date of the transaction.”