Better Collective, a leading affiliate in the iGaming industry, has recently made headlines with its acquisition of AceOdds, a prominent sports betting brand, for a substantial €42 million ($45.6 million). This strategic move is poised to redefine Better Collective’s position within the UK market and propel its global footprint to new heights.
Acquisition Rationale:
Better Collective’s decision to acquire AceOdds stems from its quest to solidify its presence in the UK market and expand its global reach. By integrating AceOdds into its portfolio, Better Collective gains access to a well-established sports betting brand with strong brand recognition and a loyal customer base. This aligns seamlessly with Better Collective’s overarching strategy of acquiring leading sports media brands across diverse niches.
Financial Implications:
The agreed-upon acquisition price of €42 million implies a previous 12-month EBITDA multiple of 4x, showcasing Better Collective’s commitment to strategic investments that offer significant value. This acquisition has prompted Better Collective to reassess its financial targets for 2024, with revised revenue targets ranging between €395 million and €425 million, reflecting a substantial growth projection of 21-30% compared to the previous targets.
Performance Metrics:
Better Collective’s performance in 2023 underscores its growth trajectory, with a commendable 21% increase in revenue and a remarkable 31% rise in adjusted EBITDA year-on-year. However, it’s worth noting a slight setback in the final quarter of 2023, where EBITDA witnessed a 16% decline. While Q1 2024 results are yet to be unveiled, the acquisition of AceOdds sets a promising stage for continued growth and market expansion.
Strategic Vision:
Ian Bowden, Senior Director UK & Ireland at Better Collective, expressed enthusiasm about the acquisition, emphasizing its significance in bolstering Better Collective’s position in the UK market and paving the way for global scalability. The addition of AceOdds to Better Collective’s portfolio fills a crucial gap, offering a robust sports betting affiliation brand in a pivotal growth market.
Future Prospects:
Looking ahead, Better Collective is poised for an exciting journey fueled by the synergies generated through the AceOdds acquisition. With a strengthened foothold in the UK market and enhanced global visibility, Better Collective is well-positioned to capitalize on emerging opportunities in the dynamic landscape of iGaming and sports betting.
The acquisition of AceOdds marks a significant milestone in Better Collective’s expansion strategy, underscoring its commitment to innovation, growth, and strategic partnerships. As Better Collective continues to navigate the evolving iGaming ecosystem, its synergistic approach and relentless pursuit of excellence are set to propel it to new heights of success and prominence in the industry.