Gambling.com Group Expands Market Reach with $160 Million Acquisition of Odds Holdings, Parent Company of OddsJam
CHARLOTTE, N.C. – October 24, 2023 – Gambling.com Group, listed on Nasdaq under the ticker GAMB, announced today that it has entered into a definitive agreement to acquire Odds Holdings, Inc., the parent company of the cutting-edge odds platform OddsJam. The acquisition aims to enhance Gambling.com Group’s position in the fast-paced online gambling industry.
Details of the Acquisition
Under the terms of the agreement, Odds Holdings’ shareholders will initially receive $80 million, with the potential for an additional $80 million based on the company’s performance through December 2026. This acquisition will provide Gambling.com Group with new, recurring revenue streams, diversifying its existing offerings in the competitive online gambling sector, which includes sports betting and iGaming.
Odds Holdings is recognized for its state-of-the-art technology platform that delivers real-time odds data, catering to both consumers and enterprise clients. According to Gambling.com Group, its OddsJam service is the premier provider of real-time odds information, empowered by a platform capable of processing over one million requests per second and handling several terabytes of data daily from nearly 300 sportsbooks.
Impact on Gambling.com Group’s Strategy
Gambling.com Group co-founder and CEO Charles Gillespie emphasized the strategic importance of this acquisition, stating, “The accretive acquisition of Odds Holdings will immediately provide Gambling.com Group with additional, recurring revenue streams which are independent of our market-leading online gambling affiliate business.” He also mentioned that the integration of Odds Holdings’ technology and product offerings presents an opportunity to accelerate growth towards the company’s ambitious goal of generating $100 million in annual Adjusted EBITDA.
For 2024, Odds Holdings anticipates generating approximately $26 million in revenue and an Adjusted EBITDA of $12 million, with projections indicating at least a 20% growth in Adjusted EBITDA under Gambling.com Group’s management by 2025.
Management and Integration Plans
The team at Odds Holdings, including its founders Ankit Goyal and Alex Monahan, along with CEO Matt Restivo, will join Gambling.com Group following the transaction’s closing, expected on January 1, 2025. The collaboration is expected to strengthen Gambling.com Group’s technological capabilities and enhance its service offerings in the online betting arena.
Matt Restivo expressed enthusiasm about the merger, stating, “Combining with a tech-focused leader in the global online gambling industry like Gambling.com Group is the natural next step for Odds Holdings.” He added that leveraging Gambling.com Group’s resources and expertise would facilitate scaling their technology and insights to reach a broader audience, potentially extending beyond North America.
Financial Framework and Future Growth
The transaction will consist of $70 million in cash and $10 million in Gambling.com Group’s ordinary shares. The cash payment is to be funded through an expanded credit facility that Gambling.com has secured with Wells Fargo, providing a minimum of $100 million in financing.
To meet the conditional $80 million payment, Odds Holdings will need to achieve significant growth in its Adjusted EBITDA by 2026. Gambling.com Group retains the option to settle up to 50% of any contingent payments in stock, offering flexibility in managing its capital structure post-acquisition.
About Gambling.com Group and OddsJam
Founded in 2006, Gambling.com Group has established itself as a leading provider of digital marketing services for the global online gambling industry. The Group operates a portfolio of over 50 websites across various languages and national markets, covering diverse aspects of online gambling.
OddsJam, characterized by its robust suite of tools and services for sports betting, offers users features such as an odds comparison tool, Positive EV Betting Tool, and a Fantasy Optimizer, aiming to empower bettors with data-driven insights for informed decision-making.
As the online gambling landscape continues to evolve, Gambling.com Group’s strategic acquisition of Odds Holdings positions it to capitalize on emerging opportunities while delivering enhanced services to its growing customer base.
End of Press Release
This news release contains forward-looking statements, including performance expectations and future operational results. The company advises caution in interpreting these projections and notes that actual outcomes may differ due to various uncertainties and risks.