Waterford iGaming firm acquires UK business in €6m deal
The purchase is being funded with recently raised debt of almost €11m from fintech lender, Thin Cats, with the new business being acquired generating combined revenues of €4.5m in the 12 months prior to close
Waterford-based digital sports and iGaming media company, OneTwenty has acquired the UK and Australian business of Catena Media in a €6m deal.
The transaction, which is expected to close in the third quarter of this year, covers the sale of all assets in Catena Media’s UK business, which includes sports betting brands Squawka and GG.co.uk, and all shares in the group’s wholly-owned Australian subsidiary.
Founded in 2016, Waterford-headquartered OneTwenty has built a network of websites and apps in the gaming, betting and sports spheres, with its latest acquisition, purchased through its subsidiary, Moneta Communications, further expanding the company's brand portfolio.
The purchase is being funded with recently raised debt of almost €11m from fintech lender, Thin Cats, with the new business being acquired generating combined revenues of €4.5m in the 12 months prior to close following substantial year-on-year growth in the first half of 2023.
"This purchase is another step on our journey to becoming a leading digital publisher at the convergence of sports, media and betting," said OneTwenty chief executive, Chris Russell.
"The portfolio builds on our horse racing and football audiences particularly and allows us to serve increasing demand from our sports-betting partners."
Announcing the divestment of its UK and Australian businesses, Catena said €5.8m of the purchase price will be paid in cash on closing, with the remaining €200,000 being paid within 75 days of closing. Sale proceeds will be used primarily to repay debt, thereby reducing the group’s leverage ratio as it shifts its focus to the North American market.
Following an impairment charge of €15.2m arising from the sale, Catena said the divested businesses’ intangible assets had a net book value of €6m at the end of June this year, adding that its cost base would be reduced by an estimated €2.8m on an annualised basis.
“This agreement is another milestone on our journey to focus the business on the North American online sportsbook and casino affiliation market," said Catena Media chief executive, Michael Daly.
"The strategic review has led us to reshape our brand portfolio to reflect this closer operational focus, and I am pleased to be delivering further progress in that direction.
“I am also delighted that we have found a buyer that is well placed to build on the success of our UK and Australian sports and casino brands and will offer them the scope and support they need to develop and grow.”
