Digital sports media group Better Collective has acquired Skycon Limited, a British global display advertising company, in a $57 million deal (converted to USD). The new acquisition will help the former company cement its leading position in sports media, helping it improve its advertising efforts.
Skycon Limited was founded in 2017 and is a Newcastle-under-Lyme-based company that specializes in display advertising. What sets Skycon apart from other brands is its audience-based approach to advertising.
As agreed, $31 million will be paid upfront, with up to $25 million to be paid in earn-outs. Better Collective said that the new acquisition will greatly complement its existing Paid Media approach with a “search engine-based” approach. The deal will therefore expand Paid Media’s addressable market and further increase the value it brings to Better Collective clients.
Upon announcing its plans to integrate Skycon Limited into Paid Media, the sports media group also noted that it plans to boost the advertiser’s growth with cross-selling synergies. At the same time, Better Collective will improve its own operational synergies.
Better Collective noted that Skycon has worked with only one sportsbook, which will change following the acquisition. In addition, the digital media group will expand its newly-acquired subsidiary’s geographical scope in key markets such as the US. It was also noted that Skycon will be used on the AdTech platform that Better Collective is in the process of building.
Better Collective Improved Its Financial Targets
Following the new deal, Better Collective updated its financial targets for the year. With Skycon Limited consolidated into the group, Better Collective expects revenue of $335.5-346.5 million (previously $319-$330 million).
The latter company also forecasts EBITDA before special items of $104.5-$115.5 million. For the moment, Better Collective does not predict a net debt to EBITDA change.
Better Collective’s co-founder and chief executive officer, Jesper Søgaard, commented on the new acquisition. He noted that his company has invested a lot in growing its Paid Media division to its current scale. At the same time, the CEO noted, the company also invested in moving revenues to recurring revenue share contracts.
During the past year, our efforts have proven successful and acquiring Skycon will be highly synergistic to this journey. Skycon is a great business, which is built on Better Collective’s favored revenue share model.
Jesper Søgaard, co-founder & CEO, Better Collective
Søgaard called Skycon a “perfect fit” for Better Collective and said that he sees a clear path for further growing the asset and scaling it across more of its business partners in many markets.