CHARLOTTE, N.C. - Gambling.com Group Limited (NASDAQ:GAMB), a key player in online gambling affiliate marketing, has completed the acquisition of Freebets.com and related assets, a move expected to significantly enhance its European market presence.
The transaction, which closed today, is projected to contribute approximately $10 million in revenue and $5 million in adjusted EBITDA for the remainder of 2024.
The strategic acquisition cost Gambling.com Group between $37.5 million and $42.5 million, with an initial payment of $20 million at closing. Additional payments include $10 million due six months post-closing and a contingent sum ranging from $7.5 million to $12.5 million, to be paid on the one-year anniversary, dependent on the new assets' revenue performance throughout 2024.
Charles Gillespie, CEO and Co-Founder of Gambling.com Group, emphasized the importance of European markets in the industry, despite the attention on U.S. gambling expansion. He expressed confidence that this acquisition would shift the dynamics of power within the European online gambling affiliate market and accelerate growth across both established and new markets in Europe.
The deal also brings new team members into the fold, who will benefit from the company's technology platform and performance culture.
Gambling.com Group, founded in 2006, manages a diverse portfolio of more than 50 websites across 15 national markets, including Gambling.com, Bookies.com, and Casinos.com. With a focus on iGaming, sports betting, and fantasy sports, the group operates primarily in the United States and Ireland.
The company's forward-looking statements regarding the anticipated revenue and EBITDA contributions from Freebets.com, as well as the potential market impact of the acquisition, are based on current expectations.
These statements are subject to various risks and uncertainties, and actual results may differ materially. Gambling.com Group's recent annual report and other SEC filings provide detailed information on these risk factors.
This strategic acquisition is based on a press release statement and reflects Gambling.com Group's commitment to strengthening its position and expanding its reach in the European online gambling affiliate market.
InvestingPro Insights
In light of Gambling.com Group Limited's (NASDAQ:GAMB) recent strategic acquisition, investors may find the following InvestingPro data points and tips particularly enlightening. The company's market capitalization currently stands at $342.82 million, with a trailing twelve-month price-to-earnings (P/E) ratio adjusted for the last quarter of 2023 at 13.09.
This suggests a valuation that may catch the eye of value-oriented investors, especially when considering the company's impressive gross profit margin of 91.61% over the same period.
One notable InvestingPro Tip for Gambling.com Group is its strong balance sheet, as it holds more cash than debt. This financial stability is a positive indicator for investors, particularly in an industry that can be affected by regulatory changes and market fluctuations.
Moreover, the company's gross profit margins have been lauded as impressive, which is reflected in the nearly 92% gross profit margin reported in the last twelve months as of Q1 2023. This high margin is indicative of the company's operational efficiency and pricing power within the online gambling affiliate market.
Still, it is important to note that three analysts have revised their earnings downwards for the upcoming period, which could signal potential headwinds or a conservative outlook on the company's near-term earnings potential. Despite this, Gambling.com Group is anticipated to be profitable this year, as per analyst predictions.
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