Affiliate giant Catena Media has come to an arrangement with the German sports betting-focused affiliate BayBets Ltd which seeks to amend the terms of the second and final earn-out payment relating to the 2017 acquisition agreement.
Through the amendment the new payments – which will be made via cash consideration – will be a fixed amount corresponding to in aggregate approximately €13m to be paid through three separate installments up until 1 October 2019.
CEO of Catena Media, Per Helberg, commented: “By amending the final earn-out terms we are both obtaining full operational control at an earlier stage as well as lowering the final and total cost of the BayBets acquisition. We are thereby avoiding further dilution as well as strengthening our balance sheet.”
As a result of the amendments, the final transaction costs for the sale of the assets will conclude at a lower level compared to the previous agreement. It will then mean that Catena Media obtains full control of the German assets earlier than originally anticipated.
Back in December 2017, Catena Media agreed to acquire all affiliate related assets in BayBets Ltd, with a total of 50 mostly German-facing websites. The purchase price amounted to an upfront payment of EUR 26.5 million.
The first earn-out was approximately €13.5m, of which thirty-five percent was paid in shares. As announced in February 2019, Catena Media announced a new issue of 468,132 shares at a subscription price of SEK 103.67 per share, as payment representing the thirty-five percent.
Consequently, the upfront payment of EUR 26.5 million, the first earn-out payment of approximately EUR 13.5 million and the second earn-out payment of approximately EUR 13 million, amounts to a final total consideration of approximately EUR 53 million for the BayBets portfolio.