Raketech has strengthened its offering in New Zealand and Canada after acquiring all assets of performance marketing firm Lead Republik for €1.4m.
Lauding the delivery of a key milestone in the online affiliate and content marketing company’s ongoing geographical expansion, the deal also encompasses the possibility of additional earnout payments based on certain performance measures.
Lead Republik is a Maltese registered media company with global revenues, however these are predominantly derived from Canada, New Zealand and Germany.
As a result of the acquisition, Raketech’s revenues outside the Nordics are expected to reach approximately 20 per cent of the group’s total revenues. The acquired operation will become an integrated part of Raketech immediately.
Oskar Mühlbach, CEO of Raketech, commented: “This acquisition is ticking a lot of strategic boxes, as it gives us further footprint in markets important for our key partners at the same time as it contributes with technical know-how in form of a high qualitative technical platform together within competence within conversion optimisation and paid media.
“We further see strong synergies when combining Lead Republik’s offering with our know-how, within organic search. I am furthermore really glad to have the brilliant Lead Republik team on board and to be able to conclude that the sellers will continue their involvement for the upcoming 12 months in order to secure a smooth handover and accelerate further expansion into new markets.”
Raketech recently reported its latest financial report, with revenue declines felt across 2019’s final quarter and full-year. A 23.3 per cent Q4 drop to €5.8m (2018: €7.6m) nudged its FY performance to €23.9m, representing a 6.5 per cent drop from €25.6m.
Mühlbach stated at the time of the announcement: “Looking back at 2019 it can easily be described as an eventful and challenging time. Not only for Raketech but also for the affiliation industry and the igaming sector as a whole.
“The Swedish gaming market has been particularly tough which with Raketech’s heavy Swedish presence added to our challenge. On a positive note, 2019 was also a year where we made good progress in strengthening our product mix, expanding our geographical footprint as well as our operational capacity.”