The prominent Danish sports wagering firm, Better Collective, is finalizing the complete acquisition of the American fantasy sports and sports betting media enterprise, RotoGrinders. Better Collective had previously secured a 60% ownership in RotoGrinders back in 2019.
The overall purchase amount is valued at €55 million (roughly $63 million), representing 7.5 times RotoGrinders’ anticipated EBITDA for the year 2021. The ultimate cost is contingent upon RotoGrinders’ year-end financial performance.
Better Collective will disburse €33 million (approximately $38 million) for the outstanding 40% share. The transaction is projected to conclude by December 31, 2021, with an initial payment of €22 million in cash and the balance of €11 million in either cash or equity.
“Following our integration with Better Collective a few years back, the latent capabilities of the RotoGrinders Network have been unlocked,” remarked Cal Spears, the Chief Executive Officer of RotoGrinders. “We are pleased to declare that our substantial expansion has expedited this acquisition, and our team of over 50 individuals will be fully assimilated into the Better Collective US structure moving forward. All seven founding stakeholders and co-creators of the RotoGrinders Network will now assume full-time or advisory positions. Better Collective possesses immense growth prospects within the US market, and we are eager to contribute to their realization.”
Established in 2010, RotoGrinders has witnessed remarkable progress throughout the preceding ten years.
This action provided Better Collective with an initial 60% ownership in the firm, which has experienced significant expansion since then.
RotoGrinders’ revenue more than doubled between 2019 and 2021, while its EBITDA increased dramatically – a remarkable 4.4 times, indicating an astounding 109% compound yearly growth rate. This triumph prompted the Danish media conglomerate to purchase the remaining RotoGrinders shares sooner than originally anticipated.
Marc Pedersen, Chief Executive Officer of Better Collective US, expressed his delight: “We are delighted to finalize the complete acquisition of the RotoGrinders Network ahead of time. The RotoGrinders squad has impressed us from the first investment, and we are eager to formally welcome them to the Better Collective family and maximize the full potential of all collaborations.”
