Better Collective has completed its acquisition of US-based RotoGrinders Network, purchasing the remaining 40% stake in RotoGrinders for a total price of €33m ($38.1m/£28.2m).
This completes the acquisition of the fantasy sports and betting content brand, which began in 2019 when Better Collective purchased a 60% stake in RotoGrinders.
The majority of the acquisition price will be paid through €22m cash consideration. The remainder will be paid in shares or cash. Better Collective will transfer both payments no later than 31 December 2021, completing the acquisition before the end of the year.
Including the €18m paid in the 2019 deal, the total expected transaction price for 100% of RotoGrinders Network shares is €51m.
“Joining Better Collective a few years back helped us fully unlock the potential of the RotoGrinders network,” said Cal Spears, RotoGrinders CEO. “We’re proud to announce that our significant growth has led to an accelerated acquisition and that our team of 50-plus will be fully integrated into Better Collective US going forward.
“All seven of the original RotoGrinders network shareholders and co-founders are now assuming full-time or advisory roles. Better Collective is perfectly positioned for US growth and we’re excited to help realize its potential.”
Better Collective expects RotoGrinders Network’s prowess in the sports betting and daily fantasy sports world to boost the company’s US performance. Since the initial 60% acquisition, RotoGrinders’ 2021 revenue more than doubled since 2019 and its 2021 EBITDA is 4.4 times higher than 2019.
Marc Pedersen, CEO of Better Collective US, said: “We are pleased to settle the full acquisition of the RotoGrinders Network earlier than originally planned. Since the initial acquisition, we have been impressed with the RotoGrinders team and we are excited to now welcome them to the broader Better Collective family and pursue all synergies to the fullest.
“Furthermore, we are pleased to keep the now-previous shareholders in Rotogrinders engaged in Better Collective with the opportunity to benefit from their competencies more widely in the organization.”
