M&A: Irish company One Twenty completes acquisition of Catena Media’s UK and Australian gambling businesses.
In an important development for the iGaming industry, Waterford-based company OneTwenty has made a significant acquisition. The company has successfully secured the UK and Australian business of Catena Media in a deal worth €6 million.
This landmark transaction is set to conclude during the third quarter of this year and encompasses the sale of all assets within Catena Media’s UK businesses. This includes well-known sports betting brands Squawka and GG.co.uk. Additionally, the acquisition involves complete ownership of Catena Media’s Australian subsidiary.
Founded in 2016 and headquartered in Waterford, OneTwenty has rapidly established itself as a key player in the gaming, betting, and sports sectors. The recent acquisition of Catena Media’s businesses, facilitated by its subsidiary Moneta Communications, significantly broadens OneTwenty’s already impressive portfolio of brands.
To finance this substantial purchase, OneTwenty has secured approximately €11 million in debt from fintech lender Thin Cats. The newly acquired businesses are projected to generate a combined revenue of €4.5 million over the 12 months leading up to the transaction’s closure. This follows substantial year-on-year growth during the first half of 2023.
Expressing his thoughts on this significant achievement, Chris Russell, Chief Executive of OneTwenty, stated, “This purchase marks another stride in our journey to become a prominent digital publisher positioned at the crossroads of sports, media, and betting. The expanded portfolio particularly enhances our presence in horse racing and football audiences, allowing us to cater to the rising demands of our sports-betting partners.”
Catena Media, in an official announcement regarding the divestment of its UK and Australian ventures, disclosed that €5.8 million of the purchase amount will be settled in cash upon completion of the deal. The remaining €200,000 will be disbursed within 75 days after the transaction’s closure. The proceeds from this sale are primarily intended to settle debts, thereby reducing the group’s leverage ratio. This move aligns with Catena’s strategic shift towards the North American market.
In light of this divestiture, Catena reported that the intangible assets associated with the divested businesses had a net book value of €6 million at the end of June this year. The company also shared that its cost base will witness an estimated annual reduction of €2.8 million.