Gambling.com Group has taken a significant step in expanding its influence within the online gambling industry by completing the acquisition of Odds Holdings, the parent company of OddsJam. This transformative move is set to bolster the Group’s offerings and contribute to its ambitious growth objectives, further solidifying its position as a leader in the market.
Details of the Acquisition: A $160 Million Strategic Move
The acquisition, initially announced in 2024, is valued at up to $160 million. It consists of an initial purchase price of $80 million, with the potential for an additional $80 million in performance-based payments through 2026. This well-structured financial strategy reflects the Group’s confidence in OddsJam’s potential to drive future growth.
The deal is financed through a combination of cash, shares, and an expanded $100 million credit facility from Wells Fargo. This diversified financing approach ensures that Gambling.com Group maintains financial stability while pursuing its strategic objectives.
Projected Financial Impact and Growth
Odds Holdings is expected to generate $26 million in revenue and $12 million in adjusted EBITDA for 2024. Under the management of Gambling.com Group, this revenue is projected to grow by at least 20% in 2025, highlighting the potential for significant financial returns.
Gambling.com Group’s CEO, Charles Gillespie, emphasized the accretive nature of this acquisition, stating that it will immediately contribute to the Group’s recurring revenue streams. He also expressed excitement about reaching the company’s long-term goal of $100 million in adjusted EBITDA.
Integration of OddsJam: Strengthening Market Position
The integration of OddsJam’s cutting-edge technology is a key component of this acquisition. OddsJam has developed a state-of-the-art odds technology platform that powers a variety of products, each with clear product-market fit. These capabilities are expected to provide Gambling.com Group with a competitive edge and diversify its revenue streams.
The founders of Odds Holdings, Ankit Goyal and Alex Monahan, along with CEO Matt Restivo, will join Gambling.com Group as part of the acquisition. Their expertise and innovative approach will be instrumental in leveraging OddsJam’s potential within the larger organization.
Expanding Consumer and Enterprise Offerings
This acquisition brings several advantages to Gambling.com Group, including:
- Enhanced Enterprise Products:
Odds Holdings provides a suite of new enterprise products that complement Gambling.com Group’s existing offerings. These tools are designed to meet the needs of businesses seeking advanced odds technology. - New Consumer Audiences:
OddsJam’s passionate and energetic user base introduces Gambling.com Group to a fresh audience. This consumer-centric approach aligns with the Group’s strategy to expand its reach and enhance user engagement. - Diversified Revenue Streams:
By integrating OddsJam’s offerings, Gambling.com Group secures additional recurring revenue streams that are independent of its core affiliate business.
Broader Implications for the Online Gambling Industry
The acquisition of Odds Holdings reflects a broader trend in the online gambling industry, where leading companies are investing in innovative technologies to stay ahead. Gambling.com Group’s strategic move demonstrates its commitment to enhancing the user experience, fostering innovation, and driving sustainable growth.
With Brazil and other emerging markets opening up opportunities for regulated online gambling, this acquisition positions Gambling.com Group to capitalize on global market trends.
Gambling.com Group’s Vision for the Future
Charles Gillespie’s remarks underline the Group’s dedication to maintaining its leadership in the industry. He stated, “The acquisition of Odds Holdings will not only accelerate our growth but also provide us with the tools to offer world-class products and services. We look forward to building on the incredible foundation laid by the OddsJam team.”
This acquisition is a clear indication of Gambling.com Group’s focus on innovation, collaboration, and long-term growth. By combining OddsJam’s technological capabilities with its own expertise, the Group is well-positioned to achieve its ambitious goals.
Conclusion: The Acquisition
The acquisition of Odds Holdings is a pivotal moment for Gambling.com Group, enabling it to strengthen its market presence, diversify its offerings, and achieve sustainable growth. With a clear vision, robust financial strategy, and innovative technology, Gambling.com Group is poised to set new benchmarks in the online gambling industry.
FAQs About Gambling.com Group’s Acquisition of Odds Holdings
1. What is the significance of Gambling.com Group acquiring Odds Holdings?
The acquisition of Odds Holdings, parent company of OddsJam, enables Gambling.com Group to strengthen its market presence, diversify revenue streams, and leverage cutting-edge odds technology. This strategic move aligns with the Group’s goal of achieving sustainable growth and expanding its footprint in the online gambling industry.
2. How much is the acquisition deal worth?
The acquisition is valued at up to $160 million, consisting of an initial purchase price of $80 million, with potential performance-based payments of an additional $80 million through 2026.
3. How is the acquisition being financed?
The deal is financed through a combination of cash, shares, and an expanded $100 million credit facility from Wells Fargo, ensuring financial stability while pursuing strategic goals.
4. What are the projected financial impacts of this acquisition?
Odds Holdings is expected to generate $26 million in revenue and $12 million in adjusted EBITDA in 2024. Under Gambling.com Group’s management, revenue is projected to grow by at least 20% in 2025.
5. Who are the key team members joining Gambling.com Group?
The founders of Odds Holdings, Ankit Goyal and Alex Monahan, along with CEO Matt Restivo, will join Gambling.com Group. Their expertise will be instrumental in integrating OddsJam’s technology and driving innovation.
6. What is OddsJam, and how does it contribute to the acquisition?
OddsJam is a technology platform offering advanced odds solutions and multiple innovative products with strong product-market fit. Its integration is expected to enhance Gambling.com Group’s offerings for both enterprise clients and consumers.
7. How does this acquisition benefit Gambling.com Group?
The acquisition provides several benefits, including:
- Enhanced Enterprise Products: Access to new enterprise-focused odds technology.
- New Consumer Audiences: Introduction to OddsJam’s engaged user base.
- Diversified Revenue Streams: Additional recurring revenues independent of its core affiliate business.
8. What is Gambling.com Group’s long-term goal?
The Group aims to achieve $100 million in adjusted EBITDA, leveraging the acquisition of Odds Holdings to accelerate its growth and strengthen its market position.
9. How does this acquisition align with broader trends in the online gambling industry?
The acquisition reflects an industry-wide focus on innovation and technological integration. As regulated markets expand globally, Gambling.com Group is well-positioned to capitalize on these opportunities with its enhanced offerings.
10. What did Gambling.com Group’s CEO say about the acquisition?
Charles Gillespie highlighted the acquisition as accretive, emphasizing its immediate financial benefits and the potential for growth. He praised the OddsJam team for their innovative technology and products, expressing confidence in the integration’s success.
11. Why is this acquisition significant for the online gambling sector?
This move underscores the importance of technology-driven solutions in the industry. By acquiring Odds Holdings, Gambling.com Group sets a precedent for strategic expansion and innovation in a competitive market.
