Online gambling-focused performance marketing company Catena Media today announced yet another acquisition deal that saw it purchase all iGaming affiliate assets of Delilah Holdings.
The transaction is expected to be completed by the end of the month. Under the terms of the deal, Catena Media is set to pay a €4.2 million upfront payment upon the assets’ transfer. Delilah Holdings’ current owners are also entitled to a maximum earn-out of €2.24 million, based on its assets’ revenue performance within the next 12 months.
Delilah Holdings was established back in 2011. It owns the MrGamez.net and Spielekiste.de affiliate websites. Both sites target and promote online gambling options to German-speaking players, with Germany and Switzerland being their main markets of interest. The company has seen stable and considerable growth in both jurisdictions over the past several years.
Catena Media said in a press release from earlier today that it expects quarterly sales of around €300,000 and an operating margin of about 80% from the two affiliate websites.
Commenting on the deal, Catena Media CEO Robert Andersson said that it will secure his company with greater exposure in German-speaking iGaming markets and that it is part of their strategy to strengthen their portfolio across Europe.
Over the past two years, the lead generation company has extended its footprint in a number of jurisdictions, including the US, through multiple purchases of iGaming affiliate websites and networks.
Releasing its financial report for the quarter ended March 31, 2017, Catena Media announced that it had 80,421 new depositing customers for the reported period, up 149% from the prior-year quarter and 20% from the prior quarter. The company reported revenue of €15.23 million for the reviewed three months, reflecting an increase of 104% from €7.5 million for the same period of the previous year. Operating profit totaled €6.6 million, up 44% year-on-year. EBITDA amounted to €7.2 million, with EBITDA margin standing at 47%.
Catena Media said that it was particularly content with its first-quarter results and hailed AskGamblers as an excellent example of assets performing positively since their acquisition. The lead generation made gambling headlines last spring with the purchase of the Serbian affiliate website for the total amount of €15 million. The deal became the largest one in the company’s history and has not been matched ever since.
An important highlight in Catena Media’s development and expansion strategy was the acquisition of UK-facing affiliate website CasinoUK. The company announced a €10.6 million for the website in question. The deal was seen as another important move in relation to Catena Media’s plans to extend and solidify its UK footprint.
The lead generation company has turned into one of the major drivers of the consolidation trend within the iGaming affiliate space.
