Gambling.com Group has enhanced its North American growth strategy after the company detailed the acquisition of NDC Media, the publisher of BonusFinder.
As a result, the former anticipates achieving an accelerated rate of expansion across the US, as well as becoming “strategically positioned” to capitalise on developments across Canada, beginning with the province of Ontario.
Fintan Costello, chair of BonusFinder, commented: “These organisations complement each other well as partners within the North American market.
“Gambling.com Group has demonstrated its leadership position within the online sports betting and igaming industry, and its proprietary technologies and experience will provide BonusFinder with the tools to maximise growth in this exciting new era of North American regulation.”
Under the terms of the purchase agreement, Gambling.com paid an aggregate purchase price of €12.5m ($13.92m), of which €10m ($11.14m) was paid in cash and €2.5m ($2.86m) in newly issued, unregistered ordinary shares.
The selling shareholders may also benefit from additional earnout payments based on financial performance in each of 2022 and 2023. According to forecasts, the total consideration, including purchase price paid at close and both earnout payments, is expected to be approximately €41m $47m). The acquisition closed on January 31, 2022.
“Over the past five years, Fintan Costello and his team have developed a professional, industry-leading, performance marketing business with a customer-centric and brand-driven approach,” explained Charles Gillespie, chief executive officer of Gambling.com Group.
“The acquisition of BonusFinder gives Gambling.com Group additional scale in the North American online gambling market.
“BonusFinder’s strong presence in Canada is expected to drive increased market share for the group ahead of the anticipated Ontario online sports betting and igaming market launch in April.”
Adding: “We believe that the combination of these two complementary businesses is immediately accretive to our fiscal 2022 earnings, and establishes a foundation for a leadership position in North America which will drive value creation for our shareholders.
“We believe the deal structure provides an attractive risk/reward balance for the group. The total consideration for the transaction will vary commensurately with the financial performance of the acquired business, guaranteeing an attractive acquisition multiple for the group and tightly aligning the financial incentives of the newly combined businesses.”