CHARLOTTE – The Charlotte-based Gambling.com Group (Nasdaq: GAMB)will acquire the nationally-syndicated fantasy sports news platform RotoWire, the company announced this week.
The move will bolster the company’s penetration in the U.S. online sports betting market and enable growth, according to a statement.
The deal could close as soon as January 2022, the statement indicated.
“The Group will leverage RotoWire’s existing audience, content library, talented workforce, media partnerships and trust with U.S. sports fans to further accelerate the Group’s already fast-growing business in the U.S. online sports betting market,” the statement reads.
The deal is for $27.5 million, $7.5 million of which will be deferred over a two-year period following closing. That’s an estimated four times the 2021 earnings for RotoWire, the company statement noted.
“Over the past 25 years, Peter and the RotoWire team have produced some of the best fantasy sports content in America and have in turn embedded their business into the heart of the American sports experience,” said Charles Gillespie, CEO of Gambling.com Group, in the statement. “Commercially, the RotoWire business has three different revenue streams, each generating over $1 million per year, which give it significant reach into sports media organizations as well as with advertisers and individual sports fans.”
According to the Gambling.com Group, the relationships and the reach of RotoWire are attractive assets.
“These deep and long-lasting customer relationships are an ideal platform from which to capitalize on the new era of American sports – the betting and gaming era,” said Gillespie.