Raketech has strengthened its sports betting portfolio and US footprint by successfully completing the acquisition of ATS Consultants Inc in a deal worth a total of $15.5m.

The assets owned by ATS include US-facing tipster portals Winnersandwhiners.com, Statsalt.com and Pickpapa.com, which Raketech said would bring several growth and development opportunities to the Malta-based business.

The deal was announced last month, with an agreed purchase price consisting of a cash payment of $12m, with an additional cash payment of $1m expected six months post-closing.

The remaining $2.5m of the total $15.5m purchase price will be settled through Raketech shares, subject to a 36-month lockup period.

Raketech said ATS could gain additional earnout payments based on certain undisclosed performance measures 36 months after the transaction is complete. 

The purchase price is equal to approximately six times ATS EBITDA and two-and-a-half times its revenue for the past six months.

Raketech plans to implement its technology and infrastructure across ATS websites, as well as introducing affiliate marketing sales in all licensed US states via the brands and tipster portals.

Raketech expects to reach over €50m in annual revenue, with an EBITDA margin exceeding 40% as a result of the purchase. 

“With all formalities now successfully closed, I look very much forward to combining our commercial models and to share technology and know-how between our teams to address the important US market,” said Oskar Mühlbach, CEO of Raketech.

“As a matter of fact, with this acquisition, over 20% of our revenue is expected from the US already during Q1 of next year, putting us in a good position in the rapid growing US market.

“Furthermore, I am happy that we, through this acquisition, strengthen our US organisation with a strong local team with extended knowledge within the US sports industry.

“I am confident that together with the ATS team, we will be able to accelerate the growth of our market share in the US sports industry,” Mühlbach concluded.

Raketech’s revenue reached an all-time quarterly high in Q3 of €9.6m, mostly through affiliate marketing in the online casino sector.

The business said at the time that a year-on-year reduction of new depositing customers (NDCs), to around 43,000, was indicative of its strategy of actively targeting fewer – but higher quality – leads.

The results appear to have generated investor confidence in the business, with Raketech’s share price moving from around SEK18.76 prior to its release, to SEK23.75 the following week. Currently, the share price sits at SEK22.30.