Better Collective Enters into Definitive Agreement to Acquire Playmaker Capital
Better Collective has announced that it has entered into a definitive agreement to acquire Toronto-based Playmaker Capital, a leading digital sports media group that owns and operates a number of strong sports media brands in the US, Canada, and across South America. Upon closing of this transformational transaction, Better Collective is expected to become the market leader in South America with the largest audience across its sports media brands and will also strengthen its leading position in North America.
Acquisition Highlights
- Better Collective’s second largest acquisition with a total price consideration of 176 mEUR
- Transformational acquisition to take market leadership in South America and enhance North American market leadership
- Acquiring strong digital sports media brands with a combined monthly audience of more than 200 million visits from across the Americas
- Experienced leadership team to stay onboard to help drive the business forward
- Clear path to synergies post integration bringing EV/EBITDA of 2026e to below 5x, implying an EBITDA margin in line with Better Collective’s publishing business of +40%. Positive synergistic effects are expected to expand further in the years thereafter
- The transaction will be funded by 65% Better Collective shares (partly by the transfer of 1,387,580 treasury shares and up to 1,713,300 newly issued shares) and 35% cash, corresponding to a dilution of approximately 3.1%. Better Collective shares will be settled at 270.48 SEK/share
- Upon closing of the transaction Better Collective will revisit its long-term financial targets for the period 2023-2027.
Playmaker Capital is a leading digital sports media group operating a strong portfolio of sports media brands across the Americas. Following the closing of the transaction, Playmaker Capital will be a wholly owned subsidiary of Better Collective. Once integrated, Better Collective expects to significantly ramp up its media capabilities and expand its audiences across its sports media portfolio.
Jesper Søgaard, Co-founder & CEO of Better Collective, said: “Acquiring Playmaker Capital is in many ways transformational for Better Collective and will be an important milestone in our journey towards becoming the leading digital sports media group. Upon closing of the acquisition, we will significantly grow our audience and reach a larger segment of generalist sports fans. For years, Playmaker Capital has built incredibly strong sports media brands and excited sports fans across the Americas with high-quality sports content, cultivating a loyal and dedicated following. The skilled team behind Playmaker Capital brings a unique set of media competencies that will boost our organization. Saying that I am excited to welcome the new team to the Better Collective group would be an understatement.”
Jordan Gnat, Co-founder & CEO of Playmaker Capital, said: “Over the past 12 months I have been talking a lot about a transformational deal for Playmaker and its shareholders that will take this company to the next level. Today’s announcement does exactly that and I could not be more excited for the Playmaker family to join the Better Collective family. Their success is undeniable and their vision to become the leading digital sports media group aligns with us exactly. The cultures of our companies are very similar and I see the integration and synergies to be incredibly accretive to shareholders.”
The closing of the transaction is subject to approval by the shareholders of Playmaker Capital, court approval, applicable regulatory approvals and certain other closing conditions customary in transactions of this nature. The transaction is expected to close before the end of Q1 of 2024, whereafter Playmaker Capital will be consolidated into the Better Collective group.
