The US-focused sports betting brand CBWG Sports has just been acquired by affiliate marketing services provider XLMedia.
XLMedia are due to pay $12 million (approximately £9 million) in cash in the transaction, and will also have to issue nearly 8 million new shares with an aggregate value of $3.5 million (approx. £2.64 million) to be able to complete the transaction.
There are further contingencies for the deal. A clause for an additional $9.5 million (approx. £7.14 million) could be included. This is based on the net revenue performance of the part of the business already acquired. The deal would be payable over three years until the end of 2023.
CBWG Sports is one of the newer brands that we have seen emerge. It entered the market after the merger of CB Sports and Warwick Gaming early in the year. Their focus is on professional and collegiate sports, plus sports gaming and betting in the USA.
So far, they are registered as a sports gaming affiliate in six states, including Pennsylvania and New Jersey, and they will no doubt be looking to expand to more.
More and more US states are beginning to roll out legal and regulated sports betting, and there is no better time to look for the opportunities available here. Affiliates interested in the American markets should pay close attention to developments as they are announced.