Gambling.com Group Ltd, which is an affiliate and media firm, has entered into a final agreement to acquire fantasy sports news and advice provider Roto Sports Inc.
The Gambling.com Group has agreed to purchase Roto Sports Inc, the operator of RotoWire.com, for a price of $27.5 million, and the cash and share transaction is expected to close in early January 2022.
According to Gambling.com, the acquisition is expected to create immediate accretion to fiscal 2022 earnings and will immediately accelerate its growth in the US online fantasy sports betting space.
CEO Charles Gillespie explained that they bought Roto Sports because they have embedded their business into the heart of the experience of American sports over the past 25 years.
From the $27.5 million aggregate purchase price, $7.5 million will be deferred over a two-year period following closing. Interestingly, the aggregate purchase price is expected to be four times larger than Roto Sports’ 2021 estimated revenue. However, the Gambling.com Group Ltd can surely afford this since they reported a 37% revenue rise in the third quarter of 2021.