The deal is structured with £25m upfront and up to £20m in earn-outs, contingent on financial performance in the 12 months following the closing period.
The acquisition will be financed with cash, and at least 50% of the earn-out will be funded by the existing revenue share database. Skycon, a British company, specializes in display advertising and paid advertising on sports media channels.
Better Collective will integrate Skycon into its paid media department and assume control of the advertising company’s recurring revenue share database. Additionally, Skycon’s sportsbook outlook will be expanded to include multiple providers and broaden its operations for a US launch.
As part of the deal, Better Collective aims to divert future new depositing customers (NDCs) to its global sportsbook agreements. The company also plans to utilize Skycon on its AdTech platform currently under development.
Jesper Søgaard, Better Collective’s CEO, believes the acquisition aligns well with the company’s strategy. He states, “We have made significant investments in our paid media division, achieving significant scale while transitioning revenues to recurring revenue share contracts. Acquiring Skycon will greatly synergize with our efforts.”
Better Collective views Skycon as an ideal match, leveraging their expertise in media buying to drive revenue growth. The company also sees opportunities for expansion by integrating Skycon into more business partnerships, exploring new territories, and utilizing their unrivaled first-party data in sports media.
The Skycon acquisition has prompted Better Collective to revise its financial targets for 2023. They now anticipate revenue between €305m to €315m (previously €290m to €300m) and an EBITDA before special items of €95m to €105m (a €5m increase). The target of maintaining net debt to EBITDA before special items at <2.0x remains unchanged.
