Online lead generation firm Catena Media announced today it acquired online sports affiliation Lineups.com to strengthen its position in the US sports betting arena.
Payment Details
Catena Media revealed a total of $39.6 million will be paid in cash in 3 installments spread over a period of 2 years, with another half-a-million payable upon fulfillment of certain requirements within 3 years of the transaction date.
“The acquisition of Lineups.com strengthens Catena Media’s leading position in the growing US betting market with a complementary product that fits perfectly into our existing US portfolio.”
Michael Daly, CEO, Catena Media
Catena will pay the initial $25 million upon closing of the transaction, another $9.6 million on the first anniversary of the deal, and the final $5 million on the deal’s second anniversary of the closing date.
“It gives us a second, even stronger, national sports betting affiliation site, alongside thelines.com. This will allow us to capture more market share across North America, as well as to take advantage of shared tools across multiple Catena Media sites.”
Michael Daly, CEO, Catena Media
The contingent $0.5 million will be paid in case the state of New York allows sports betting within 3 years of the transaction’s closing date and a certain revenue threshold is met.
Positive Effect on EBITDA
Catena announced there are no material conditions related to the transaction’s closure and that the acquisition of Lineups.com is expected to have a direct positive effect on the media’s earnings before interest, tax, depreciation and amortization (EBITDA) as of the consolidation date, May 4, 2021.
Specialist in analytics, betting predictions and tools Lineups.com provides bettors with useful information regarding starting line-ups and rosters for the games from US professional sports leagues, including the National Football League (NFL), National Basketball Association (NBA), Major League Baseball (MLB), and National Hockey League (NHL), as well as for fantasy sports.
“Sam Shefrin, the seller and founder of Lineups.com, will bring his industry and technology focus to the Catena Media team and will work with us for the near future as an exclusive consultant to the business.”
Michael Daly, CEO, Catena Media
Besides starting line-ups, the online sports affiliation which boasts a strong presence on regulated markets across most of the US jurisdictions, including recently launched markets in Virginia and Michigan, considers all kinds of information around players and teams, such as injuries, news, performance, and trends.
In January, Malta-based Catena Media released its full year 2020 financial results posting a record revenue in December from its US operations which accounted for 30% of its annual total.