Better Collective purchases Action Network in $240m deal
Better Collective has unveiled its brand new expansion into the US sports betting and affiliate scene after it announced that it has taken over Action Network in a $240 million agreement. This has become the firm’s largest M&A transaction yet, as it obtained all the assets of the US sports betting publisher Action Network on a ‘cash and debt-free basis’.
The publisher further implied that this takeover was essential to its business, as it will be helping the company in improving and diversifying its growth and expansion in the United States as it acquired the assets of Action Pro, Fantasy Labs and Action Labs, whose revenue will be added to its US portfolio. Better Collective said that Action Network will be kept as a separate business unit, which will be running operations as a part of Better Collective US.
Action Network’s management will still be led by Patrick Keane, who is the CEO, and he will be reporting directly to Marc Pedersen, Chief Executive of Better Collective US. Through this agreement, Better Collective has taken a $12 million new share issuance for employees, management and stakeholders of Action Network.
Patrick Keane commented on the deal and said:
“I am thrilled about this outcome for our employees and investors and we look forward to continuing to forge great relationships with our league, media and sportsbook partners. Under Better Collective’s ownership, we become part of a company with many years of experience and all the resources necessary to further grow our position and develop our offering, to ultimately enhance the betting and entertainment experience for sports fans. We gain new colleagues, career paths and perspectives. I’m looking very much forward to the journey ahead.”
In an update for stakeholders, the firm said that through Action Network’s rapid growth path, Better Collective will be able to attain revenues close to $40 million, which is a 100%+ increase, as well as generate positive earnings throughout this year.
Some more benefits from this agreement will see the company boosting its US betting editorial and technical provisions as it acquires Action Network’s “original sports news content, premium insights, deep menus of odds and proprietary betting tools and data”.
CEO of Better Collective, Jesper Søgaard, spoke of the deal and lauded Action Network for being an energetic and youthful company that had turned into the most trusted source of US sports betting for all sports fans.
“I am thrilled to welcome Action and its employees to Better Collective. This acquisition, which is the largest in Better Collective’s history, gives us a leading position within affiliation in the US and a strong foundation for profiting from the continuous regulation of the US betting market. We add three new, very well positioned US sports media brands to our portfolio and welcome around 100 new colleagues, together representing an invaluable pool of knowledge and expertise on the US sports betting media market. By all accounts, this is a great day for Better Collective.”