Playmaker Capital has confirmed the acquisition of Wedge Traffic as it seeks to diversify its portfolio of expertise to the igaming and affiliate space.
Under the provisions of the deal, Playmaker acquired 100% of Wedge Traffic shares for a transaction price of $31.2m, made up of a closing payment of $8.5m, the issuance of nearly 3.7 million shares priced at $0.54 each and contingent consideration of around $20.7m.
Playmaker Capital eyeing igaming affiliate space
Wedge Traffic is an affiliate marketing firm based in Glasgow, Scotland and is currently active in 16 US states and Ohio. The firm deploys its proprietary user acquisition tactics and owns eight websites to create content for its audiences directly to online sportsbooks and casino operator clients.
Wedge has affiliate marketing relationships with 15 online sportsbooks and casinos and supplies a significant number of new and recurring customers to those clients.
Following the deal’s completion, Wedge Founders Dan Kersh and David Copeland will join Playmaker’s senior management team and will provide the company with expertise in igaming affiliation, an area that PLaymaker is eager to expand into.
“Outside of the fact that Playmaker’s diverse portfolio of brands will directly complement our business, there were two key reasons for making the decision to join the Playmaker family,” said Kersh.
“Firstly, they understand how to support and accelerate data-driven marketing within the igaming sector. Secondly, and perhaps of even greater importance, they appreciate the value of creating a winning culture and how it must be considered the heartbeat of any successful business.”
Playmaker has noted that this acquisition will increase its ability to meet the increasing demand for sports betting and igaming content, following its identification of affiliation as a way of providing value to igaming partners.
Citing Wedge’s ‘high visibility call to action’, Playmaker believes that it can create ‘highly targeted marketing campaigns’ for its partners and users in the igaming space.
Pressing on with M&A
This marks the 15th acquisition that Playmaker has made since last April and is consistent with the firm’s strategy of acquiring profitable companies.
This M&A strategy has paid off for Playmaker, which cited its acquisitions as part of its success during Q2, when revenue was $7m for the quarter.
“We have been very clear that creating a center of excellence in affiliate was key to rounding out our offering as a leading sports media business,” said Jordan Gnat, Playmaker CEO.
“We look to super-serve all of our partners, and Wedge allows us to better serve critical customer segments, sports betting and igaming operators.
“The team at Wedge is superb and we could not be happier having them join our family. Dan, David, Ryan and their team have worked together for years and they have quickly built relationships within Playmaker over the past few months.
“This gives us great confidence that we can win together, leveraging the assets and expertise already present in our Playmaker ecosystem.”