Raketech, an iGaming marketing group, will acquire QM Media’s North American subsidiary, P&P Vegas Group Inc, in a €16m ($18.8m/£13.7m) deal. The acquisition includes PicksandParlays, a flagship betting tips channel, and the India-facing cricket site OnlineCricketBetting. Raketech expects its revenues from the US to double and the Indian revenues to reach 5-10% of the group’s total by Q4 2021. The company also anticipates that its sports vertical will contribute approximately 30% of its total revenues in Q4 this year.
PicksandParlays, with over a decade of establishment, attracts around half a million unique monthly users and generates income through subscriptions and tip sales. Raketech plans to monetize its existing commercial relationships with major US sports book operators to drive additional growth through traditional affiliation.
OnlineCricketBetting reaches more than one million unique users during major events like the Indian Premier League. Raketech believes that the acquisition will not only establish a significant position in cricket betting affiliation but also enable them to take a leading position in the Indian market.
Moreover, the acquisition includes a portfolio of sports assets targeting the Nordics. Raketech aims to achieve several strategically important goals through these acquisitions, including significant sports revenues, revenues from high-growth markets, a strong presence in the US, asset diversification, and new revenue streams.
The agreed purchase price for the acquisition is €16m, which will be settled in a cash payment of €9m and an issuance of 3,881,968 new Raketech shares amounting to €7m. The purchase price represents a multiple of approximately 5.6x EBITDA and 3.8x revenues for the last 12 months.
Oskar Mühlbach, CEO of Raketech, expressed excitement about the acquisitions and highlighted the value that PicksandParlays will bring to the US business through the implementation of affiliate marketing sales in all licensed states. He also looks forward to the talented and committed team joining forces with Raketech’s central operations team to accelerate growth.
Marcus Egstam, CEO of QM Media, emphasized that partnering with Raketech will provide access to their established infrastructure, enabling them to leverage their strong brands and market positions. He expressed enthusiasm about becoming shareholders in Raketech and being a part of the exciting future planned.
