Raketech acquires assets of ATS Consultants in $15.5m cash and share deal

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Igaming performance marketing partner Raketech has acquired the assets of tipster ATS Consultants Inc, a provider of tailored pre-game insights for sports, with key assets Winnersandwhiners.com, Statsalt.com and Pickpapa.com. 

The pre-game insights are served to sports fans across the US by a dedicated team of experts located in Baltimore. As a result of the acquisition, Raketech’s US revenues are expected to reach up to 20% of the group’s total already during Q1 2022. Meanwhile, its sports segment is expected to reach up to 35% of the group’s total.

The agreed purchase price amounts to $15.5m on a cash and debt free basis and will be settled in a cash payment of $12m as per closing and through an additional cash payment of $1m six months post closing. The additional purchase price will be settled through issuance of new Raketech shares amounting to $2.5m. 

The price represents a multiple of approximately 6x EBITDA and 2.5x revenues for the last 12 months, with the possibility of additional earnout payments based on certain performance measures 36 months post closing.

The acquisition complements Raketech’s US asset portfolio and includes 20 employees in Baltimore who will continue to work there led by ATS current CEO Jordan Abrams and form Raketech’s local office in the US.

Oskar Mühlbach, CEO of Raketech said: “I am thrilled that we are able to follow up the latest acquisition of P&P Vegas Group with yet another strategically important acquisition in the US. This market is of specific interest to us as it is expected to grow substantially within the next years. And I believe that adding Raketech’s commercials and operational ability to the acquired assets is a great way to maximize this opportunity.”

He continued: “I am also excited to have the talented ATS team on board, and I am looking forward to combining our commercial models and to share technology and know-how between us. Furthermore, as Raketech already offers sports insights and betting tips in the US, there are obvious opportunities to cross-promote and collaborate across our ecosystem of assets to provide even better service to the end user as well as even better marketing opportunities for our clients, the operators”.