Better Collective Pays $21 Million For 60 Percent Of Sports Betting Network
In October 2018, RotoGrinders created the RG Network to offer consumers with tools that included identifying the best sports bettors. A mere seven months later, RotoGrinders is announcing that the RG Network has been acquired.
Sports betting information provider Better Collective, which owns over 2,000 websites including BettingExpert.com, has immediately added a 60% stake in the parent company of RotoGrinders — Rical LLC. It paid $21 million for the position, which increases to 100% ownership by 2024, at a valuation based upon an EBITDA multiple between 5x and 10x.
$17.85 million will be paid in cash, with Better Collective providing $3.15 million in shares as well, to come to the $21 million figure. Up to 35% of the future 40% in payments may be paid in the form of shares in Better Collective, at its discretion. All such shares will be subject to a twelve month lock-up period from the date of issuance.
By June 1, RotoGrinders will be fully consolidated into the Better Collective accounts. RotoGrinders’ portfolio includes Rotogrinders.com, Pocketfives.com, Sportshandle.com, USbets.com and Pennbets.com. While the platform has historically positioned itself to be a leader for daily fantasy sports, the business focus heavily shifted to sports betting and other online gaming since the fall of the Professional and Amateur Sports Protection Act (PASPA) in 2018, opening the floodgates for states to legalize sports betting within their borders.
In 2018, RotoGrinders generated more than $8 million in revenue as well as operating earnings of over $3 million. It will keep an office in Nashville, Tennessee as Better Collective creates its own U.S. presence, managed by VP of Business Development and Sales, Marc Pedersen, in New York.
Better Collective says it anticipates revenue of more than $10 million in 2019 and that it will boast an organization in the U.S. of over fifty employees specialized in U.S. sports and affiliate marketing.
“Since PASPA was repealed by the U.S. Supreme Court last year, we have carefully evaluated how best to establish Better Collective in the growing U.S. market,” says Better Collective CEO Jesper Sogaard. “We have assessed various acquisition opportunities, searching for access to strong products and dedicated people with insight into this market. We strongly believe that we found exactly that in RotoGrinders, where we see a strong and dedicated management team and talented employees.”