Better Collective purchases RotoGrinders Network for $21M.
Better Collective, a Copenhagen, Denmark-based company which develops digital platforms for bookmaker information, iGaming communities, and betting tips, announced the completion of an acquisition of 60% of the shares in the American company Rical LLC (RotoGrinders).
The purchasing price is $21M.
The remaining 40% of the shares in RotoGrinders are held by the company’s three founders and certain key employees. The three founders will continue managing the daily business of RotoGrinders. The company has approximately 50 employees.
In the period 2022-2024, Better Collective will acquire the remaining 40% of the shares of RotoGrinders at a valuation based upon an EBITDA multiple between 5x and 10x. The valuation will be determined by the future growth and profitability of RotoGrinders and Better Collective’s other business in the United States.
RotoGrinders, founded in 2009 and headquartered in Nashville, Tennessee, owns a strong network of platforms for sports betting and daily fantasy sports in the US, including rotogrinders.com, pocketfives.com, sportshandle.com, usbets.com, and pennbets.com).
In 2018, RotoGrinders generated revenue of >8 million USD and operating earnings of >3 million USD (EBITA). Combined with Better Collective’s current business, the total (annualised) revenue from the US market is expected to exceed 10 million USD in 2019.