Acroud, a rapidly growing lead generation company in sports betting, has acquired an unnamed business that is well positioned for emerging markets such as Latin America, Africa, and Asia. This acquisition is expected to boost Acroud’s growth in strategic focus areas like sports betting and emerging markets. The acquired company consists of approximately ten growth websites, which will complement Acroud’s existing sports betting websites and enhance its betting offering. With strong growth in 2020, the acquired business is predicted to continue its upward trajectory in 2021 and beyond.
The sales generated by the acquired business over the last twelve months amount to approximately €0.9-1m, with an EBITDA of €0.4-0.5m. Acroud will pay €1.5m for a 51% stake in the business upon completion, with a call option to acquire the remaining 49% at the end of 2023 or 2025. The exercise of the call option will be based on the financial performance of the business over twelve months, with an EBITDA multiple of 3.5x. The payment for the acquisition will be made in cash from existing reserves (40%) and through the use of own shares (60%). The access to the business took effect on November 17, 2020.
Robert Andersson, Acroud’s president and CEO, stated, “This acquisition is an important step in Acroud’s strategy to become the ‘media house of the future’ and a leading global challenger in digital comparison and news services. The acquired business brings world-class SEO expertise and a proven track record of strong growth, which will benefit our overall business growth.”
Acroud has been actively expanding its operations globally. Besides this acquisition, the company has signed a letter of intent (LoI) to acquire a fast-growing US tipster company for €2.2m and another LoI to acquire the igaming assets of online marketing supplier PMG group for €5.5m. The completion of these acquisitions, along with other ongoing ones, is set to transform Acroud’s operations.
In November 2020, Acroud reported a disappointing Q3, with a significant decline in revenue and profit. The company aims to bounce back in 2021 by expanding into the US and Netherlands markets.
