Catena purchases i15 Media’s online sports betting and casino assets

Skywind Holding has lauded a “key milestone” for its B2C presence as the firm finalises its acquisition of Intouch Games. 

Catena Media is eyeing an acceleration of its “already rapidly expanding” North American business, after strengthening its operations via the acquisition of online sports betting and casino affiliation assets from i15 Media.

This comprises more than 100 websites and domains that focus on states starting their first full American football season, such as Michigansharp.com, upcoming states via NYSportsDay.com), and nationally ranking sites like bonus.com and gamblingonline.com. 

The total purchase price is $45m, with $12.5m payable in cash on closing, and a further $20m in three instalments, with $5m in cash or shares, as preferred by Catena Media, on December 15, 2021; $5m in cash on June 1, 2022; and $10m in cash on December 15, 2022. 

The remaining $12.5m of the purchase price will be settled with 2,207,357 new Catena Media shares as soon as feasible after closing.

The assets generated combined revenue of approximately $8m in the 12 months to July 31, 2021. Sixty-seven percent of this figure arose in Q1 2021, coinciding with the peak of the North American sports season and the opening of the states of Michigan and Virginia.

Catena Media says that the purchase will have a direct positive effect on Catena Media’s EBITDA as of the consolidation date September 9, and the company expects an average EBITDA margin of at least 70 per cent from the assets.

Michael Daly, CEO Catena Media, commented: “The addition of i15 Media’s online sports betting and casino assets to our North American portfolio will accelerate our already rapidly expanding business there. 

“In addition to i15’s strong national and state brands generating revenues in current markets, the additional coverage for upcoming states will further cement Catena Media’s leadership position in the United States.

“I am also excited that i15 Media’s founder and owner will join us as a consultant for the next few years. He will provide valuable support for our internal team as we pursue our roadmap.”

Catena Media’s North American business grew 121 per cent in the first half of 2021 and accounted for 49 per cent of total group revenue.