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Better Collective has announced it will issue shares equal to around 10% of its total capital to prepare for future M&A.

The tier-one affiliate said it intends to issue the new share capital in an accelerated bookbuilding process to “increase its financial flexibility”.

The net proceeds of the offering will be used to pay down the company’s current debt obligations, it said, to allow it to “act in a highly fragmented market with many attractive acquisition opportunities”.

Better Collective has made 34 acquisitions since 2017. The company’s latest transaction, the €176m purchase of Canadian affiliate Playmaker Capital, completed at the beginning of February.

The share issuance, which is not underwritten, will be aimed at institutional and professional investors in Denmark, Sweden and “certain other jurisdictions,” the firm said.

Better Collective has not yet set an offer price, which it said will be revealed following the conclusion of the accelerated bookbuilding process.

“The final pricing and number of the new shares are expected to be announced as soon as practically possible thereafter,” said the affiliate in a press release.

An accelerated bookbuilding is a form of offering in which shares are made available for a short time with little or no marketing.

The new shares are expected to settle at or around 4 March, the company said.

BLS to purchase 50% of new shares

Danish fund BLS Capital Fondsmæglerselskab has committed to subscribing to 50% of the offering as an anchor investor.

Due to the capital raise, Better Collective and its executives have agreed not to sell any shares until the release of the company’s Q1 financial report.

On account of a lack of consolidation compared to the rest of the market, the affiliate space continues to be one of the most dynamic areas for gambling M&A.

Better Collective dominated affiliate M&A activity in 2023. For example, Earnings + More highlighted that the company was responsible for six of the 10 affiliate acquisitions that took place during the year.

The company was also responsible for the largest three purchases of the year.

Those were the €176m Playmaker Capital deal, the €56m purchase of Skycon and the €49.5m Playmaker HQ agreement.

The decision to highlight M&A in the capital raise is a sign Better Collective aims to continue that trend into 2024.

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