Better Collective has recently announced its acquisition of Playmaker Capital for a total price of €176m. This deal is expected to be finalized in the first quarter of 2024. The acquisition will make Better Collective the market leader in South America and will also enhance its leadership position in North America.
To finance the purchase, Better Collective will use 65% shares and 35% cash. After the acquisition is complete, the company will revisit its financial targets for the period of 2023 to 2027.
Playmaker Capital, based in Toronto, has its shares listed on the TSX Venture Exchange and the OTCQX. It owns popular sports media brands such as Futbolsites.net, Yardbarker, and The Nation Network. Better Collective will acquire all of Playmaker’s assets.
The main goal of this acquisition is to achieve enhanced scale and increase investments in product, technology, and marketing. Better Collective also aims to expand its sports fan audience in the Americas as a result of this deal.
Under the terms of the transaction, Playmaker common shareholders will receive CA$0.70 per share. The two largest shareholders of Playmaker, Relay Ventures and JPG Investments, hold a combined 24% of shares. They will exchange a portion of their Playmaker shares for Better Collective shares. This larger shareholder sale will consist of approximately 75% Better Collective shares and 25% cash. Both shareholders have agreed to lock-up agreements, preventing them from selling their Better Collective shares for a specific period of time.
The CEO of Playmaker Capital, Jordan Gnat, expressed his excitement about the acquisition, stating that it will take the company to the next level. He believes that the cultures of both companies are similar, and the integration and synergies will be beneficial for the shareholders.
Jesper Søgaard, co-founder and CEO of Better Collective, considers this deal to be an important milestone in the company’s digital sports media journey. He believes that the acquisition will significantly expand the company’s audience and allow them to reach a larger segment of generalist sports fans. Søgaard also expressed his enthusiasm about welcoming the Playmaker team to the Better Collective group, highlighting their strong sports media brands and loyal following.