Two days ago Catena Media confirmed their purchase of Dreamworx online. The whole deal has been concluded and will cost Catena a total of €9.5 million ($11.6 million), which will be paid partly (€4 million) in shares issued recently in Catena and partly (€5.5 million) in cash.
The shares will be issued at a subscription price of SEK 102,70 per share, corresponding to the volume-weighted average price for Catena Media’s shares on Nasdaq Stockholm during a period of 30 trading days up to and including January 16, 2018. This means that a total of 385,924 shares will be issued, corresponding to approximately 0.7 percent of the shares and votes in the company. The shares will be subject to a lock-up period of 12 months as from the closing date of the transaction.
Dreamworx is a German company that operates sports, casino and financial services and the Sportwettenanbieter.com, Fussballwetten.info and DeutscheFXBroker.de websites.
Catena expects around €600.000 sales in the first trimester of the year with a margin of around 80% from the newly bought assets.
Dreamworx will now be a part of the sports division in Baybets, another fresh purchase for Catena, from back in December last year. As an additional consideration, Baybets may add the increased performance of the Dreamworx assets to existing earn-out calculations, and the maximum earn-out payments to Baybets will be amended. The maximum amount of the first earn-out payment will now rise from €20m to €23m, while the second earn-out payment will increase from €43.5m to €50.5m. Up to 40% of the earn-out payment related to the Dreamworx assets can be paid in Catena shares. As a result, Catena expects total earn-out payment for Baybets, in a “reasonable scenario”, to jump from €30.5m to €39m.
The Chief Executive of Catena Media, Henrik Persson Ekdahl had a comment on the matter: “The assets of Dreamworx will strengthen our position as the leading affiliate in Germany. This will place us in the top position, short-term for the Fifa World Cup 2018 as well as long-term.”
The whole deal is expected to be completed by the end of January.
Here is what you need to know about Catena Media:
Catena Media plc is an online performance marketing company that has established a leading position through strong organic growth and acquisitions. The business was started in 2012 and the group has approximately 245 employees in the US, Australia, Japan, Serbia, UK, and Malta, where the Head Office is situated. In 2016, revenues reached approximately EUR 40 million. The company is listed on Nasdaq Stockholm Mid Cap.