Acroud AB acquires 60% of Affiliation and Media

Acroud AB, a global provider of software-as-a-service (SaaS) solutions for the affiliate industry, announced the acquisition of a 60% stake in an affiliate and media company for a total consideration of £5.1 million ($5.8 million).

Grow in sports betting

The acquisition includes affiliate assets and online gaming technology and is expected to positively impact Acoud’s annual revenue and EBITDA of more than €9 million ($8.8 million). dollars) and 4 million euros ($3.9 million), respectively.

“This acquisition is another piece of our puzzle to make Acroud a diverse player in the advertising and affiliate space based on smart solutions,” said Robert Andersson, CEO and President of Acroud AB. , noting that the newly acquired assets and technology “fit very well” into the company’s current product portfolio and set the company on a new growth path.

The total prize will include £1 million ($1.13 million) in shares and £4.1 million ($4.6 million) in cash which will be paid over 18 months. Acroud said it would finance the transaction through existing cash and future operating cash inflows.

The transaction is pending no additional conditions and closes on October 13, 2022. Acroud has paid £2 million ($2.26 million) in cash and £1 million ($1.13 million) in cash. dollars) in shares at closing and will pay the remaining £2.1 million ($2.37 million) in cash over the next 18 months.

Calculation of Share Consideration

The equity consideration for the transaction was based on the volume-weighted average price on the Nasdaq First North Growth Market for the 20 consecutive trading days preceding the announcement, converted to GBP using the exchange rate determined by the Riksbanken on the date 5 business days before the date on which the consideration shares are issued. Shares must be issued within 20 days of closing and will be subject to a lock-up period of two years from the date of closing.

A call option for the remaining 40% of shares based on the financial performance of an EBITDA multiple of 5.5x for the 12 months ending September 30, 2028, will be available to Acroud in 2028, and if is exercised, the acquisition of the outstanding shares will be paid for 40% in existing cash and 60% in treasury shares.

The acquisition is in line with Acroud’s expansion strategy, adding recurring revenue to sports betting and ensuring new depositing customers more than double the company’s existing customers, and it aligns with the idea of ​​creating a company with low volatility and stable profitability.

Cathy W. Howerton