The acquisition establishes Gambling.com Group Plc (“Gambling.com Group”) as one of the leading players for mobile performance marketing.
The developers, Sabin Brooks and Mike Webb, have spent the past four years developing websites & mobile apps that specialize in gambling content for mobile users in a variety of jurisdictions. The network focuses primarily on online casino and sports betting operators and drives more revenue from the United Kingdom than any other market. With this acquisition, Gambling.com Group opens up an entirely new and quickly growing channel through which it can grow its performance marketing business.
The acquired assets are expected to generate sales of approx.EUR 400,000 with a pre-tax profit margin of more than 90% during the first quarter of 2018. The acquisition is being consolidated from January 1st, 2018.
The developers will join Gambling.com Group and share their knowledge of mobile development and App Store Optimization (ASO) with the rest of the organization, assisting an internal team with the mobile strategy for Gambling.com. The arrangement will last through at least March 31st, 2019.
The purchase price amounts to an upfront payment of GBP 3.0 million which will be paid as a cash consideration in conjunction with the transfer of the assets. In addition, there is an earn-out of maximum GBP 4.5 million which is based on earnings performance over a period of one year. In order to achieve the full earn-out amount, the sellers need to generate earnings growth during the earn-out period of over 25%. Gambling.com Group may choose to pay any portion of the earn-out payment above GBP 3 million in newly issued shares of the company.
“Sabin and Mike are talented developers and have built a fascinating business which does something new and different. For us this was a rare opportunity to do an acquisition of a business that actually innovates and has defined a new segment of the market. I look forward to building and improving all of our products alongside Sabin and Mike.” said Charles Gillespie, Gambling.com Group Chief Executive.###
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About Gambling.com Group Plc.
Gambling.com Group Plc is a multi-award winning provider of digital marketing services for the global iGaming industry. Founded in 2006, the group has a workforce of over 80 and operates from offices in Dublin, Tampa, Monaco and Malta. The group publishes websites that offer comparisons and reviews of online gambling websites in 15 national markets in 9 languages. Players use these resources to select which online gambling operators they should trust to offer a safe and honest online gambling experience. The group’s publishing assets include the leading iGaming industry portal, Gambling.com® as well as Bookies.com and the CasinoSource℠ series of portals, among many others.