Gambling.com bolsters Affiliate M&A warchest

28 November 2017

Gambling.com has issued a second convertible bond for €8.9m ($10.5m) as it seeks further expansion within the Nordics market.

Along with its first convertible bond issued in February, Gambling.com, which was previously known as KAX Media, has now generated a total of €16m and completed its fundraising plan for the year.

The bond, which has a final maturity of July 2020 and bears a fixed rate coupon of 10.00%, attracted 46 different investors, with the funds mainly coming from backers based in Sweden.

Speaking to iGaming Business about the new bond issue, Charles Gillespie, chief executive of Gambling.com Group, said the company will look to target casino affiliates that are seeking growth.

“In terms of what we are looking for, we are focused on acquisitions in regulated markets; we’re looking for things of meaningful size that we feel we can improve, primarily casino affiliates with additional room to grow,” Gillespie said.

“We are certainly leaning more toward Sweden as it is the largest and most likely to regulate, but we do have plans to enter the regulated Danish market as well.”

Gillespie also touched on the impact that Catena Media has had on the market and how this has affected Gambling.com.

“Catena has done us a massive favour by educating the investment community about what an affiliate business is and why they have sustainable, long-term value,” Gillespie said.

“They have done a good job with their investor relations, which has resulted in a strong valuation for themselves; this should push up the valuations of similar businesses.

“Practically speaking, Catena’s size does not cause us any actual problems as the market is still so fragmented.

“However, we’re competing for the same acquisitions in certain cases; they have deep pockets but that isn’t the only thing required to close a deal.”

Gillespie added: “At this point, there is a gap in the market where Catena would be unlikely to pursue acquisitions that do not meet a certain size requirement.

“We on the other hand are still happy to do deals that may be too small for Catena.”

Related article: KAX Media unveils new Gambling.com Group brand