Better Collective Closes Action Network Acquisition
The successful completion of the deal has secured Better Collective with significantly expanded presence in the US, a market that many European companies have aggressively pursued expansion in since the Supreme Court lifted a long-standing sports betting ban in the spring of 2018.
Action Network is a New York City-based sports media company that features news and analyses primarily focused on the rapidly evolving US athletic gambling landscape.
Better Collective acquired the US company for $240 million in cash and $11.4 million in new Better Collective shares which are to be issued at a share price of SEK231.35, a weighted average over five trading days prior to the signing of the deal on May 3.
The company will pay an additional $10 million in cash on a deferred basis as settlement of certain existing share options in Action Network.
This is the latest in a series of US-focused acquisitions completed by Better Collective in recent years. In 2019, the company purchased RotoGrinders Network to establish a strong position across the pond. Better Collective paid $20 million for a 60% stake in the other company, which owns multiple popular sports betting and online gambling-focused media sites such as Pocket Fives, PennBets, US Bets, and Sports Handle, among others.
Key to US Growth
The recent acquisition of Action Network will be key to Denmark-headquartered Better Collective’s continued US expansion effort, the company pointed out.
The newly acquired entity will continue to operate as a separate business but will become an integral part of Better Collective US, it became known. Action Network will thus retain its current brands, management team, and staff members, who are led by CEO Patrick Keane. He will report to Group Management through Better Collective’s US CEO, Marc Pedersen.
Commenting on the addition of Action Network to the larger group, Better Collective CEO and co-founder Jesper Søgaard said that they are excited to have finalized this deal and formally welcome Action Network’s team to the larger group.
Mr. Søgaard continued that this acquisition provides them with a leading position within the US sports betting media field and “a strong foundation for profiting from the continuous regulation of the US betting market.”
Action Network CEO Patrick Keane added that with their new parent company’s experience and capabilities, they now have the resources to continue to grow its “already leading sports betting product and media business” in order to “ultimately enhance the betting and entertainment experience for sports fans in the US.”
Source: Better Collective completes acquisition of Action Network, Globe Newswire, May 28, 2021
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