Raketech is making the decision to offload a part of its business.
The online affiliate and content marketing company has announced an agreement to divest its non-core U.S. advisory business in a transaction valued at roughly $2.25 million. The deal has been initiated with a partial cash payment ahead of an ongoing revenue share agreement. The transaction is expected to close by Sept. 1 and is subject to a one-off non-cash impairment charge. The charge is expected to be approximately $10.8 million.
“This strategic sale is an important step in streamlining our operations and focusing on our core strengths,” said Raketech CEO Johan Svensson. “By leveraging our high-quality U.S. operations, our strategy is to maximize the growth potential in digitalized subscription and affiliate marketing revenues and expand our sub-affiliate marketing and partnership revenue streams. We are confident that this move will enhance our focus, drive improved performance, and deliver long-term sustainable growth and value creation.”
Raketech will be divesting ATS Consultants Inc., the U.S. advisory business it acquired in December 2021, following a comprehensive review of its business operations and assets in America. Raketech has been able to increase traffic to its U.S. offerings through a fully digital lead conversion model compared to its previous manual, high-touch process. As a result of the review and digital capabilities, Raketech divested its U.S. advisory business.
Raketech will be selling the advisory business to its management team. For the 12 months to the end of Q1 2024, the U.S. business generated roughly $4 million in total revenue.
Raketech solidifies new leadership
The Malta-based company confirmed in May the appointment of Svensson as its permanent CEO. Svensson, a Raketech co-founder, was appointed Acting CEO in early 2024. He had previously served as CEO until 2017 before transitioning to COO.
