SBC News Raketech secures €15m credit facility to support acquisitions strategy

Raketech secures €15m credit facility to support acquisitions strategy

Raketech has secured a one-year revolving credit facility with Avida Finans for a total of €15 million, enabling the firm to continue embarking on strategic acquisitions.

Interest on the facility – which replaces an existing facility with Swedbank of €10 million – stands at 4.25%, in addition to an annual upfront commitment fee.

Furthermore, as well as assisting the firm with conducting its long-term acquisitions strategy, the credit facility will also be used for the financing of working capital, other investments and ‘general corporate purposes’.

“We are delighted to enter into this new relationship with Avida Finans and take advantage of the strong debt markets to strengthen our financial flexibility,” said Oskar Mühlbach, CEO of Raketech.

“The new agreement offers beneficial terms and enables us to keep a high pace in our M&A activities to propel our group growth in strategically important markets”.

Acquisitions have played a key role in Raketech’s commercial outlook over the past year, with the takeovers of AmericanGambler and Lead Republik identified as key revenue drivers in the firm’s Q1 2021 report.

Although increasing expenditure to €2.9 million (2020: €1.6 million), the operator reported that the acquisitions assisted it with boosting its revenues to €8.3 million (Q1 2020: €6.5 million), whilst earnings derived from sports increased to 17% of group trading – representing an annual increase of 27%.

The €1.4 million acquisition of Malta-registered igaming affiliate network Lead Republik in particular enabled Raktech to access markets in Canada, Germany and New Zealand, and was expected to result in the firm’s revenue outside the Nordics to account for 20% of total group earnings.

SBC News Raketech secures €15m credit facility to support acquisitions strategy

Check Also

SBC News Raketech downgrades 2024 earnings guidance on tough Q2 trading

Raketech downgrades 2024 earnings guidance on tough Q2 trading

Raketech Plc seeks to stabilise its financial performance, following a ‘challenging period’ for its business …

SBC News Johan Svensson named permanent CEO at Raketech

Johan Svensson named permanent CEO at Raketech

Johan Svensson, Raketech Co-Founder, has been appointed as permanent CEO of the igaming marketing company. …

SBC News Raketech posts weak Q1 earnings impacted by Google headwinds

Raketech posts weak Q1 earnings impacted by Google headwinds

Raketech Plc cites that it has encountered ‘unexpected challenges’ at the start of 2024 trading, …