Playmaker moves into igaming affiliation with $31.2m Wedge Traffic acquisition
Playmaker will pay an initial upfront payment of $8.5m in cash and 3,694,933 Playmaker common shares, priced at CAD$0.75 per share. The share value of the upfront payment is therefore worth around $2.8m.
There will then be a further contingent consideration of $20.7m. The largest portion of this contingent payment will be a payment of $16.7m – paid in a combination of cash and shares – if the business hits certain targets in 2023 and 2024 for revenue and earnings before interest, tax, depreciation and amortisation (EBITDA).
Playmaker will also make two payments based on EBITDA in those years, worth $1.5m in 2023 and $1.0m in 2024. Finally, there will be two payments, both of $750,000, if the business hits certain revenue targets in 2023 and 2024.
RB Capital advised Wedge Traffic on the deal.
Playmaker already owns a number of sports media sites such as Yardbarker and JuanFootball. However, it said that the Wedge acquisition would allow it to “also becom[e] a leading affiliate for the newly regulating igaming industry across the US and Canada”.
Wedge Traffic owns and manages eight web properties, including affiliate site Wedge News and Twitch channel Slot Squad. Its properties are currently active in 16 US states, plus Ontario in Canada.
“We have been very clear that creating a centre of excellence in affiliate was key to rounding out our offering as a leading sports media business,” Playmaker CEO Jordan Gnat said.
“We look to super-serve all of our partners and Wedge allows us to better serve critical customer segments, sports betting and igaming operators. The team at Wedge is superb and we could not be happier having them join our family. Dan, David, Ryan and their team have worked together for years and they have quickly built relationships within Playmaker over the past few months.”