SBC News Better Collective acquires Playmaker Capital for €176m to build Americas empire

Better Collective acquires Playmaker Capital for €176m to build Americas empire

Better Collective A/S has struck definitive terms to acquire Toronto TSX-listed Playmaker Capital for a total consideration of €176m.

Executing its second-largest M&A transaction, Better Collective will expand its media network across North and South America, taking control of Playmaker’s extensive coverage of sports portals including FutbolSites, Yardbarker, and The Nation Network.

Of distinction, Playmaker’s media portfolio attracts over “200 million monthly visits from the Americas.” Better Collective has emphasised FutbolSites‘ extensive portfolio of online, social media, video, and podcasts as South America’s largest fan-favourite sports community, boasting over 180 million visitors each month.

Investors were informed that “upon closing of this transformational transaction, Better Collective is expected to become the market leader in South America with the largest audience across its sports media brands and will also strengthen its leading position in North America.”

The deal terms set the €176m buyout of Playmaker to be funded via a combination of Better Collective’s share allocation (65%) and cash reserves (35%). Playmaker’s share reward will be settled with Better Collective allocating existing treasury shares (1,387,580 in total) and the remainder from the issuance of new shares (approximately 1,713,300 shares).

The share distribution will result in a dilution of circa 3.1% for existing shareholders. The value of Better Collective shares has been fixed at SEK 270.48 per share for the purposes of the transaction.

SBC News Better Collective acquires Playmaker Capital for €176m to build Americas empire
Jesper Søgaard – Better Collective

The leadership team of Playmaker will remain in place to guide the business as it transitions to become a wholly-owned subsidiary of Better Collective.

“Acquiring Playmaker Capital is in many ways transformational for Better Collective and will be an important milestone in our journey towards becoming the leading digital sports media group,” said Jesper Søgaard, Co-founder & CEO of Better Collective.

“For years, Playmaker Capital has built incredibly strong sports media brands and has engaged sports fans across the Americas with high-quality content, cultivating a loyal and dedicated following. The skilled team behind Playmaker Capital brings a unique set of media competencies that will enhance our organization. To say I am excited to welcome the new team to the Better Collective group is an understatement.”

Deal makers informed that as of Q3 trading, Playmaker has generated year-to-date revenues of €55m, combined with an EBITDA result of €15m. The performance marks an enterprise value to EBITDA ratio (EV/EBITDA) of 11.7 times. Better Collective projects that it can reduce the buyout multiple to below 5x by 2026, aligning with the group’s target of a +40% EBITDA trading margin.

Upon the closing of the transaction, Better Collective will review its long-term financial targets for the period 2023-2027, in which the company will publish its Q3 trading update on 15 November.

Prior to finalising the deal, Better Collective had established media partnerships with a number of Playmaker brands, providing insights into co-synergies and value creation.

SBC News Better Collective acquires Playmaker Capital for €176m to build Americas empire
Jordan Gnat – Playmaker Capital

Jordan Gnat, Co-founder & CEO of Playmaker Capital, emphasised the significance of the acquisition, stating it will “take the company to the next level.”

“Today’s announcement does exactly that, and I could not be more excited for the Playmaker family to join the Better Collective family. Their success is undeniable and their vision to become the leading digital sports media group aligns perfectly with ours. The cultures of our companies are very similar, and I foresee the integration and synergies being incredibly accretive to shareholders.”

Check Also

SBC News Better Collective: Getting the most out of EURO 2024

Better Collective: Getting the most out of EURO 2024

Esben Skou Vinther, VP of Europe Better Collective, spoke to Insider Sport about the importance …

Better Collective CEO Jesper Søgaard

Better Collective diversifies media strategy for restless summer

Better Collective’s leadership announced that the Playmaker Capital integration is going as planned from Q1 …

SBC News Better Collective Q1 stresses importance of completing US revshare transition

Better Collective Q1 stresses importance of completing US revshare transition

Better Collective A/S has reaffirmed its position as global gaming’s most valuable media firm following …