U.S. sports betting platform Action Network to be bought by Denmark's Better Collective
03/05/2021 21:32
May 3 (Reuters) - Better Collective A/S BETCO.ST , a
Denmark-based company which offers tools and media content to
help subscribers place more-informed bets, said on Monday it
agreed to buy rival Action Network Inc for $240 million.
"With the acquisition of Action Network, Better Collective
gains clear market leadership within sports betting media and
affiliation in the U.S. and now expects to increase its revenues
in the U.S. to more than $100 million by 2022," Better
Collective said in a statement.
Sports betting deals are rising due to several U.S. states
legalizing the practice after the U.S. Supreme Court overturned
a federal ban in 2018.
Sports betting generated U.S. revenue of $1.5 billion in
2020, according to a report from research firm Eilers & Krejcik
Gaming cited in the Wall Street Journal, and is on track to
generate $5.8 billion by 2023.
The deal is expected to be completed in the second quarter
of 2021, Better Collective said. It added that Action is
expected to achieve revenues of about $40 million in 2021, a
rise of over 100% year-on-year.
The purchase price of $240 million will be settled in a cash
payment and a $12 million issuance of new Better Collective
shares to Action's management, key employees and some other
individuals, according to the statement.
The cash component of the purchase price will be provided
through bank financing, the statement said, adding that Action
will continue to operate as a separate business unit.
(Reporting by Kanishka Singh in Bengaluru; Editing by Lisa
Shumaker)
((Kanishka.Singh@thomsonreuters.com; +91 8061822801;))