Catena Media has signed an agreement to sell its UK and Australian online sports betting brands for EUR 6.0 million to Moneta Communications Ltd, a leading UK-based sports betting affiliate.
The transaction, which is expected to close in Q3 2023, covers the sale of all assets in Catena Media’s UK business, which includes sports betting brands Squawka and GG.co.uk, and all shares in the group’s wholly owned Australian subsidiary.
The sale marks a further step forward in refocusing the business on the North American market following the strategic review of the business communicated in May 2022.
EUR 5.8 million of the purchase price will be paid in cash on closing and EUR 0.2 million will be paid within 75 days of closing. Sale proceeds will be used primarily to repay debt, thereby reducing the group’s leverage ratio.
Following an impairment charge of EUR 15.2 million arising from the sale, the divested businesses’ intangible assets had a net book value of EUR 6.0 million on 30 June 2023. The businesses generated combined revenue in the 12 months to date of approximately EUR 4.5 million and EBITDA of about EUR 0.9 million.
The sale will reduce the group’s cost base by an estimated EUR 2.8 million on an annualised basis. These savings will be realised directly on closing.
Catena Media CEO Michael Daly said: “This agreement is another milestone on our journey to focus the business on the North American online sportsbook and casino affiliation market. The strategic review has led us to reshape our brand portfolio to reflect this closer operational focus, and I am pleased to be delivering further progress in that direction.
“I am also delighted that we have found a buyer that is well placed to build on the success of our UK and Australian sports and casino brands and will offer them the scope and support they need to develop and grow.”
Christopher Russel, CEO of Moneta Communications, said: “We are happy to have acquired these established and successful brands from Catena Media. This acquisition allows Moneta Communications, as part of the OneTwenty Group to further our plan to acquire fan focused, profitable digital media assets that cover major sports in important markets. We are excited to further develop and grow the assets and the team.”
