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Better Collective has acquired UK sports betting media brand AceOdds in a transaction valued at €42m on a net cash/debt-free basis.

This acquisition is set to bolster Better Collective’s footprint in the UK.

Founded in 2008, AceOdds started with the goal of providing UK sports enthusiasts with a user-friendly betting calculator.  

Over the years, AceOdds has expanded its offerings to include a range of betting tools, odds comparison, reviews, and streaming schedules. It operates through both web and app platforms.

Despite already maintaining a robust presence in the UK, Better Collective said this acquisition further solidifies its position in one of the world’s biggest markets for sports and sports fans.

“This strategic acquisition brings us a robust owned and operated sports betting media brand in the UK market, poised for global scalability,” said Better Collective senior director for UK & Ireland, Ian Bowden.

“Aligned perfectly with Better Collective’s overarching strategy of acquiring leading sports media brands across various niches, the AceOdds brand fills a crucial gap by offering a vital sports betting affiliation brand in a pivotal growth market for the Better Collective group, along with an app benefiting from hundreds of thousands of installs to further increase the reach we can provide our partners,” he added.

Expected synergies

Better Collective sees this acquisition as a strategic step to leverage local expertise and scale the AceOdds brand globally.

The acquisition will bring significant synergies for Better Collective.

AceOdds comes with substantial recurring revenue, and its integration will enable Better Collective to expand its global network of sportsbooks, including those in the US.

The company plans to leverage AceOdds’ SEO capabilities and invest heavily in product enhancements to grow the brand’s audience further.

Additionally, the AceOdds app will provide zero and first-party data for market segmentation and targeting through Better Collective’s AdTech platform, AdVantage.

Transaction details

The €42m purchase price will be financed with €40m in cash and the remainder in Better Collective shares, based on the firm’s volume-weighted average share price on Nasdaq Copenhagen.

Over the past 12 months, AceOdds achieved operational earnings (EBIT) of approximately €10m, with the purchase price implying a last 12-month EBITDA multiple of 4x.

Better Collective plans to reinvest part of this profitability into enhancing the product and user experience, which may moderately reduce short to mid-term profitability.

Earlier this year, Better Collective raised €145m to prepare for future acquisition opportunities.

Revised financial targets

Following the acquisition, Better Collective has updated its 2024 financial targets, now projecting revenue in the range of €395m to €425m, implying 21% to 30% year-on-year growth.

The affiliate previously expected full-year 2024 revenue to reach between €390 and €420m.

EBITDA before special items is now forecasted to come in between €130m and €140m, up from the prior guidance of €125 and €135m, reflecting 17% to 26% growth.

The company aims to maintain a net debt to EBITDA ratio of less than 3x.

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