Catena Media signed Thursday an agreement to sell its UK and Australian online sports betting brands for EUR 6 million ($6.6 million) to UK-based sports betting affiliate Moneta Communications.
The transaction, which is expected to close in Q3 2023, covers the sale of all assets in Catena Media’s UK business, which includes sports betting brands Squawka and GG.co.uk, and all shares in the group’s wholly-owned Australian subsidiary.
According to the company, the sale marks a step forward in Catena’s plans to refocus the business on the North American market following a strategic review of the business last year.
The review initially focused on certain assets but was expanded to cover all European online betting and casino businesses. It has also led to Catena reducing its staff headcount and cutting back strategic investments as part of wider cost-saving plans.
Of the total EUR 6 million purchase price, EUR 5.8 million will be paid in cash on closing and EUR 0.2 million will be paid within 75 days of closing. Sale proceeds will be used primarily to repay debt, reducing the group’s leverage ratio.
Following an impairment charge of EUR 15.2 million ($16.8 million) arising from the sale, the divested businesses’ intangible assets had a net book value of EUR 6 million on June 30. The businesses generated combined revenue in the 12 months to date of approximately EUR 4.5 million ($5 million) and EBITDA of about EUR 0.9 million ($992,421).
The sale is expected to reduce the Malta-based group’s cost base by an estimated EUR 2.8 million ($3 million) on an annualized basis. “These savings will be realized directly on closing,” said the company in a statement.
Catena Media CEO Michael Daly said: “This agreement is another milestone on our journey to focus the business on the North American online sportsbook and casino affiliation market. The strategic review has led us to reshape our brand portfolio to reflect this closer operational focus, and I am pleased to be delivering further progress in that direction.
“I am also delighted that we have found a buyer that is well placed to build on the success of our UK and Australian sports and casino brands and will offer them the scope and support they need to develop and grow.”
Christopher Russel, CEO of Moneta Communications, said: “We are happy to have acquired these established and successful brands from Catena Media. This acquisition allows Moneta Communications, as part of the OneTwenty Group, to further our plan to acquire fan-focused, profitable digital media assets that cover major sports in important markets. We are excited to further develop and grow the assets and the team.”
The divesting of its UK and Australian online sports betting brands follows Catena Media’s sale of its casino affiliate websites Askgamblers.com, Johnslots.com, Newcasinos.com, and several smaller domains to iGaming technology company Gaming Innovation Group (GiG) earlier this year, also part of its strategic refocus.
The consideration (on a cash-free and debt-free basis) of the deal was €45 million ($47.8 million), of which €20 million ($21.2 million) was paid at the time, with the remaining balance to be paid in two installments: €10 million ($10.6 million) on January 31, 2024, and 31 January 2025 (€15 million) ($15.9 million).
Original article: https://www.yogonet.com/international/noticias/2023/08/04/68195-catena-media-accelerates-north-american-strategy-with-66m-uk-australia-assets-sale
