Catena Media has announced a deal to divest its UK and Australian Sports Betting Brands in a €6 million deal. Squawka and GG.co.uk will be sold to UK-based Moneta Communications in order for Caneta Media to focus on the US market.

Strategic move to reshape brand portfolio

The deal is scheduled for completion in Quarter 3 this year. Catena Media’s brands are well-establish and the decision for the company to part ways with Squawka and GG.co.uk indicat its determination to redirect its focus and build a stronger presence in the North American online sportsbook and casino affiliation market.

Catena Media’s decision to part ways with Squawka and GG.co.uk confirms its determination to strengthen its presence in the North American online sportsbook and casino affiliation market. The move follows a strategic review initiated by Catena Media in May of the previous year.

Implications to reduce company’s leverage ratio

Under the terms of the agreement, Moneta Communications will pay €5.8 million in cash upon closing the deal, followed by an additional payment of €200,000 within 75 days of completion. The majority of the proceeds from the sale will be allocated towards repaying Catena Media’s debt, resulting in a reduction of its leverage ratio. Additionally, the divestment is projected to lead to an estimated annual cost base reduction of €2.8 million, with immediate savings upon the deal’s closure.

Catena Media CEO Michael Daly(pictured above), expressed satisfaction with the agreement. He said that the deal is aligned with the company’s strategic goals: “This agreement is another milestone on our journey to focus the business on the North American online sportsbook and casino affiliation market.” He noted the company’s commitment to reshape its brand portfolio to reflect this operational focus and praised the buyer’s potential to further develop and grow the divested brands.

Moneta Communications expansion plans

Moneta Communications, a leading sports betting affiliate in the UK and part of the OneTwenty Group, said that the acquisition is a significant step towards its expansion into fan-focused, profitable digital media assets. The deal strengthens Moneta’s position as since 2014 it has been operating a network of specialized websites covering major sports such as football, horse racing, golf, tennis, cricket and rugby.

Combined revenue of divested businesses

In the year leading up to the transaction, the combined revenue of Squawka and GG.co.uk amounted to approximately €4.5 million, with an EBITDA of around €900,000. Following the sale, the divested businesses carried a net book value of €6 million as of June 30, 2023. However, the transaction prompted an impairment charge of €15.2 million.

Catena Media’s stock (CTM.ST) is currently trading at SEK23.56, reflecting a 2.61 percent increase.

This deal signifies a pivotal moment for Catena Media as it aligns its focus with the lucrative North American online market, while Moneta Communications secures valuable assets to expand its digital media global footprint.

?????? ???????? SiGMA ???????????????????????? ? LIMASSOL, CYPRUS | 4-7 SEPT and WILLEMSTAD, CURA?AO | 25-28 SEPT

SiGMA’s next stop is Limassol, Cyprus

Treating crypto assets as a form of gambling would pose a risk (www.hbm2.top)

Unsuccessful NASDAQ listing for PlayUp