Better Collective, a leading developer of digital platforms for bookmaker information, iGaming communities, and betting tips, has recently acquired AceOdds, a prominent UK sports betting media brand. The acquisition, valued at €42 million on a net cash/debt-free basis, is set to enhance Better Collective’s presence in the UK market.

AceOdds, established in 2008, began with a mission to provide UK sports enthusiasts with an easy-to-use betting calculator. Over the years, it has broadened its services to include a variety of betting tools, odds comparison, reviews, and streaming schedules, catering to its users through both web and app platforms.

M&A	Better Collective acquires AceOdds for €42 million
? AceOdds’ Evolution	Since 2008, AceOdds expanded from betting calculator to comprehensive betting services.
? Global Expansion	Will scale AceOdds globally, leveraging its SEO for BC’s AdTech platform, AdVantage.
? Financial Strategy	The purchase is financed with €40 million in cash and shares, with reinvestment plans
? Revised Targets	BC projects 2024 revenue of €395-€425 million, indicating significant year-on-year growth

Despite Better Collective’s already strong presence in the UK, this acquisition further solidifies its position in one of the world’s largest markets for sports and sports fans. Ian Bowden, Better Collective’s Senior Director for UK & Ireland, expressed his enthusiasm for the strategic acquisition, stating that it brings a robust owned and operated sports betting media brand to the UK market, poised for global scalability.

The acquisition aligns perfectly with Better Collective’s overarching strategy of acquiring leading sports media brands across various niches. The AceOdds brand fills a crucial gap by offering a vital sports betting affiliation brand in a pivotal growth market for the Better Collective group. The AceOdds app, benefiting from hundreds of thousands of installs, will further increase the reach Better Collective can provide its partners.

Expected synergies and transaction details

Better Collective sees this acquisition as a strategic step to leverage local expertise and scale the AceOdds brand globally. The acquisition will bring significant synergies for Better Collective. AceOdds comes with substantial recurring revenue, and its integration will enable Better Collective to expand its global network of sportsbooks, including those in the US.

The company plans to leverage AceOdds’ SEO capabilities and invest heavily in product enhancements to grow the brand’s audience further. Additionally, the AceOdds app will provide zero and first-party data for market segmentation and targeting through Better Collective’s AdTech platform, AdVantage.

The €42 million purchase price will be financed with €40 million in cash and the remainder in Better Collective shares, based on the firm’s volume-weighted average share price on Nasdaq Copenhagen. Over the past 12 months, AceOdds achieved operational earnings (EBIT) of approximately €10 million, with the purchase price implying a last 12-month EBITDA multiple of 4x.

Better Collective plans to reinvest part of this profitability into enhancing the product and user experience, which may moderately reduce short to mid-term profitability. Earlier this year, Better Collective raised €145 million to prepare for future acquisition opportunities.

Revised financial targets

Following the acquisition, Better Collective has updated its 2024 financial targets, now projecting revenue in the range of €395 million to €425 million, implying 21 percent to 30 percent year-on-year growth. The affiliate previously expected full-year 2024 revenue to reach between €390 and €420 million.

The company’s EBITDA, excluding special items, is now projected to fall within the range of €130 million to €140 million. This is an upward revision from the previous forecast of €125 million to €135 million, indicating a growth rate of 17 percent to 26 percent.

Better Collective A/S is committed to keeping its net debt to EBITDA ratio below 3x, demonstrating its strong financial management.

Currently, the shares of Better Collective A/S (BETCO-DKK.CO) are being traded at kr192.80, marking a 4.78 percent increase.