Catena Media amends final earn-out payment on BayBets deal
Published 10th July 2019
The affiliate giant purchased BayBets in December 2017 and had agreed to make two earn-out payments as part of the acquisition.
Catena paid €26.5m (£23.8m/$29.7m) upfront for BayBets, which operates some 50 websites in the sports betting sector, with a focus on the German market.
Catena then followed up with its first earn-out payment of €13.5m, of which 35% was paid in shares. In February of this year, Catena issued 468,132 shares at a price of SEK103.67 each for this section of this payment.
Now, Catena has agreed that for the second and final pay-out, it will settle for a fixed amount of €13m. This will be paid in three instalments between now and October 1 this year.
The amendment means the final cost of the acquisition will conclude at a lower cost than anticipated under the initial agreement, with Catena also taking control of BayBets earlier than expected.
The final total consideration for the BayBets acquisition stands at €53m.
“By amending the final earn-out terms we are both obtaining full operational control at an earlier stage as well as lowering the final and total cost of the BayBets acquisition,” Catena chief executive, Per Hellberg, said.
“We are thereby avoiding further dilution as well as strengthening our balance sheet.”