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Better Collective has announced the completion today of its acquisition of Toronto-based sports media group Playmaker Capital. The brand owns and operates a number of sports media brands in the Americas.
Simultaneously, Better Collective’s Board of Directors has “resolved to increase the company’s share capital with nominally EUR 17,554.29”. Accordingly, 1,755,429 new ordinary shares, each with a nominal value of EUR 0.01, have been issued and subscribed against contribution of common shares of Playmaker Capital.
Also, following the acquisition, Better Collective has updated its 2027 long-term financial targets.
Confirming the news, the company stated: “Under the terms of the transaction, Better Collective acquired all of the issued and outstanding shares of Playmaker Capital for a consideration of 0.70 CAD per Playmaker Capital Share. The consideration comprises cash and shares of Better Collective.”
With the transaction now complete, Playmaker Capital’s common shares are expected to be delisted from the TSX Venture Exchange shortly after the date hereof. Playmaker Capital will also apply to cease to be a reporting issuer under applicable Canadian securities laws. Playmaker Capital will be consolidated into Better Collective’s financials as per February 6, 2024.
Jesper Søgaard, Co-founder & CEO of Better Collective, said: “I am truly excited for the completion of the acquisition of Playmaker Capital which marks a significant step towards our vision of becoming the leading digital sports media group. Over the last few months, we have had great discussions with the management team of Playmaker and these have reinforced my confidence in the combined future of our organisations.
“I look forward to welcoming the entire Playmaker team and its leading sports media brands to the Better Collective group and to realise the many synergies that lie ahead for our business.”
Gnat added: “Today the Playmaker family begins the next phase of our journey by joining the Better Collective family. As the teams have gotten to know each other over the past few months I have been inspired by the cultural fit and the excitement for this opportunity going forward by both teams.
“A special thank you to Jesper, Christian and the Better Collective team for the confidence you have shown in our team. We are as excited as ever to continue this journey with all of you. I would also like to thank all the Playmaker shareholders for their support of Playmaker and look forward to their continued support of Better Collective as together we become the leading digital sports media group.”
Updating investors on its long-term financial targets, the company advised: “Better Collective’s long-term financial targets were given during the group’s Capital Markets Day in March, 2023. Here it was stated that the financial targets included both organic and M&A growth, solely funded by cash and debt. The Playmaker Capital acquisition comes with a small dilution of around 3%, prompting Better Collective to revisit the targets.”
The 2027 long-term financial targets have been revised to forecast revenue CAGR of +20% (unchanged); EBITDA margin before special items of 35-40% (previously 30-40%); and net debt to EBITDA below 3x (unchanged).
The company also claimed that the acquisition of Playmaker Capital increases its confidence in reaching the revenue CAGR target. “Consequently, a narrowing of the EBITDA target to the upper end is concluded as the synergies in moving revenues from advertising towards performance marketing will increase margins towards 2027,” it said.
A total of 1,755,429 new shares have been issued in connection with a share capital increase of nominally EUR 17,554.29 in Better Collective. The new shares, said the firm, have been subscribed for at a rate of 260.020,79 (in Danish “tegningskurs”) equal to a price of EUR 26.002079 per share and a total subscription amount of EUR 45,644,804 against contribution of 230,322,189 common shares of Playmaker Capital.
The new shares will be issued through Euronext Securities Copenhagen under Better Collective’s ordinary ISIN DK0060952240 and will be admitted to trading and listing on Nasdaq Copenhagen and Nasdaq Stockholm following registration with the Danish Business Authority which is in process. The expected first day of trading of the new shares on Nasdaq Copenhagen and Nasdaq Stockholm is 8 February 2024.
Better Collective’s statement concluded: “Pursuant to section 32 of the Danish Capital Markets Act, it is hereby announced that the total nominal value of Better Collective’s share capital after the capital increase will be EUR 571,228.47 which will be made up of 57,122,847 shares of nominally EUR 0.01 each, corresponding to 57,122,847 votes.”
