Catena Media to Sell UK and Australian iGaming Businesses for €6.0 Million
Catena Media plc has entered into an agreement to divest its UK and Australian online sports betting brands for €6.0 million (£5.2 million/US$6.6 million). The buyer, Moneta Communications Ltd, is a leading sports betting affiliate based in the UK.
The transaction includes the sale of all assets related to Catena Media’s UK business, which comprises sports betting brands Squawka and GG.co.uk, as well as all shares in the group’s wholly owned Australian subsidiary.
This move is part of Catena Media’s strategy to focus on the North American market, following a strategic review of the business in May 2022.
The purchase price of €6.0 million will be paid as €5.8 million in cash upon closing and EUR 0.2 million within 75 days of closing. The proceeds from the sale will primarily be used to reduce the group’s debt and improve its leverage ratio.
After considering an impairment charge of €15.2 million resulting from the sale, the net book value of the divested businesses’ intangible assets was recorded at €6.0 million as of June 30, 2023. The combined revenue generated by these businesses in the 12 months to date amounted to approximately €4.5 million, with an EBITDA of about €0.9 million.
The divestment is expected to lead to an estimated annual cost reduction of €2.8 million for the group, which will be realized upon closing of the transaction. The deal is anticipated to conclude in Q3 2023.
Catena Media CEO Michael Daly said: “This agreement is another milestone on our journey to focus the business on the North American online sportsbook and casino affiliation market. The strategic review has led us to reshape our brand portfolio to reflect this closer operational focus, and I am pleased to be delivering further progress in that direction.
“I am also delighted that we have found a buyer that is well placed to build on the success of our UK and Australian sports and casino brands and will offer them the scope and support they need to develop and grow.”
Christopher Russel, CEO of Moneta Communications said: “We are happy to have acquired these established and successful brands from Catena Media. This acquisition allows Moneta Communications, as part of the OneTwenty Group to further our plan to acquire fan focused, profitable digital media assets that cover major sports in important markets. We are excited to further develop and grow the assets and the team.”