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Raketech strengthens its offering in Canada and New Zealand with the acquisition of all assets of performance marketing company Lead Republik Ltd

By March 11, 2020August 27th, 2020No Comments

Raketech, the iGaming performance marketing partner, today delivered on an important milestone on the company’s geographical expansion strategy by announcing that it acquires all assets of Lead Republik Ltd, a Maltese registered media company with global revenues, however predominantly from Canada, New Zealand and Germany. As a result of the acquisition, Raketech’s revenues outside the Nordics are expected to reach approximately 20 percent of the group’s total revenues.

The agreed purchase price amounts to EUR 1.4m, representing a multiple of approximately 3x EBITDA and 0.5x revenues for the last twelve months, with the possibility of additional earnout payments based on certain performance measures. Paid media, which is a large portion of the revenues is expected to lower EBITDA margin for the group slightly, at the same time as the top line revenues as well as earnings, already within midterm horizon is expected to have positive impact.

Oskar Mühlbach, CEO of Raketech said: “This acquisition is ticking a lot of strategic boxes, as it gives us further footprint in markets important for our key partners at the same time as it contributes with technical know- how in form of a high qualitative technical platform together within competence within conversion optimization and paid media. We further see strong synergies when combining Lead Republik’s offering with our know-how, within organic search.

I am furthermore really glad to have the brilliant Lead Republik team on board and to be able to conclude that the Sellers will continue their involvement for the upcoming 12 months in order to secure a smooth handover and accelerate further expansion into new markets.”

Raketech has acquired the assets, including all employees, of Lead Republik Ltd as of 11 March 2020 for an upfront payment of EUR 1.4m, with the possibility of additional earnout payments based on certain performance measures. Part of the earnout is capped up to a maximum of EUR 0.3m until 28 February 2021, and part of the earnout is uncapped, based on future performance up until 28 February 2022. The acquired operation will be an integrated part of Raketech Ltd as of 11 March 2020. The acquisition will as at closing be settled using Raketech’s current cash.

For more information, please contact:

Oskar Mühlbach CEO, oskar.muhlbach@raketech.com
Andreas Kovacs, Head of investor relations, andreas.kovacs@raketech.com

This information is such that Raketech Group Holding P.L.C. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:45 CET on 11 March 2020.

About Raketech Group

Raketech is a leading online affiliate and content marketing company, with expertise in delivering comparison services for sports and gaming, online guides, communities and social media products. Raketech guides sports and gaming enthusiasts to the best possible services, while also delivering high-quality traffic and leads to its

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partners. Raketech grows both organically and via acquisitions and operates its business in accordance with a clear framework for responsible affiliate marketing services. The company’s shares are listed in Nasdaq First North Premier Growth Market with ticker RAKE. Erik Penser Bank AB is the company’s Certified Adviser: +46 8 4638300 / certifiedadviser@penser.se. For more information, visit www.raketech.com.