Gambling.com Group Finalizes Freebets.com Purchase

Gambling.com Group has completed the acquisition of Freebets.com.

Gambling.com Group has bought Freebets.com for a price that will be between $37.5 million to $42.5 million, based on how much money the site makes later. They've already paid $20 million and will pay another $10 million in six months. Depending on how the site does in 2024, they'll pay an extra $7.5 million to $12.5 million after one year.

Details of the Deal

• Initial payment: $20 million
• Second payment: $10 million after six months
• Final payment: Between $7.5 million and $12.5 million, one year post-deal, based on 2024 revenue
• Total possible cost: $37.5 million to $42.5 million

The company is using its available cash, borrowing money, and will use the money it makes later to pay for the purchase. It's predicted that Freebets.com will make an extra $10 million in sales and $5 million in profits before interest, taxes, depreciation, and amortization this year.

Impact on the Affiliate Market

Charles Gillespie, the chief executive of Gambling.com Group, said buying another company will make a big difference in Europe's affiliate market. Even though there's a lot of focus on the U.S., he pointed out that Europe is still important. This deal shows they are really focused on growing in Europe.

Company Expansion and Profitability Results

Gambling.com Group made $108.7 million in 2023, which was 42.1% higher than the year before. They also made money this year—$21.1 million—unlike last year when they lost money. They started Casinos.com and worked with The Independent, which were big achievements. Their earnings before interest, taxes, depreciation, and amortization (EBITDA) went up by 52.3%.

Future Expectations

Gambling.com Group expects to earn between $129 million and $133 million in 2024, which is over a 20% increase from what they made in 2023. They also think that their profits before interest, taxes, depreciation, and amortization—commonly known as EBITDA—will be from $44 million to $48 million. These predictions assume that they won't enter any new markets in the U.S. or buy any more companies, except for Freebets.com.

Gambling.com Group has grown this year, and buying Freebets.com looks good for their future. They plan to grow more as they start including Freebets.com in their work, especially in Europe.