iGaming affiliate Better Collective has finalised a 60 per cent acquisition of Rical LLC (RotoGrinders) which will see the affiliate boost its presence across the US market.
The $21m (£16.6m) acquisition will see the affiliate further build its US operations, with the intention to keep the RotoGrinders headquarters in Nashville, Tennessee as the centre for operating US focused products and business.
Furthermore, Better Collective USA has opened an office in New York, headed up by Marc Pedersen, which will coordinate all of Better Collective’s activities in the US, including sales and marketing activities.
The remaining 40 per cent of Rotogrinders is expected to be acquired throughout the 2022-2024 period, with a valuation based upon an EBITDA multiple between 5x and 10x. The valuation will be determined by the future growth and profitability of RotoGrinders and Better Collective’s other business in the United States.
Jesper Søgaard, CEO of Better Collective, praised the new acquisition. He commented: “Since PASPA was repealed by the US Supreme Court last year, we have carefully evaluated how best to establish Better Collective in the growing US market.
“We have assessed various acquisition opportunities, searching for access to strong products and dedicated people with insight into this market. We strongly believe that we found exactly that in RotoGrinders, where we see a strong and dedicated management team and talented employees.
“Management and key employees remain shareholders in RotoGrinders for the coming years, in which the US market is expected to unfold, whereby management and key employees on the one side and Better Collective on the other to a large extent share the potential risks and upside. We are truly excited about this opportunity.”
Better Collective has been active in New Jersey since 2014, but through the recent acquisition, the affiliate group intends to expand into new US markets including West Virginia, Rhode Island, and Pennsylvania.
RotoGrinders currently operates a strong network of platforms for sports betting and daily fantasy sports (DFS) in the US, including rotogrinders.com, pocketfives.com, sportshandle.com, usbets.com and pennbets.com.
RotoGrinders will be fully consolidated into the Better Collective accounts as from June 1, 2019. The value of the assets and remaining committed tranche payments will be included in the accounts at an estimated fair value.
Calvin Spears, CEO and co-founder of RotoGrinders, also celebrated the landmark transaction for the group. He added: “Joining the Better Collective group will help us fully realize the potential we’ve created with the RotoGrinders network. Regulated online sports betting will create an enormous affiliate marketing opportunity in the US.
“We feel Better Collective is the perfect partner for us as this opportunity unfolds. The experience, resources, and technology they’ve built up over the past 15 years in European sports betting will prove incredibly valuable here. Our combined goal is to be the largest US sports betting affiliate and we’re in a great position to make it happen.”