Better Collective to bolster M&A war chest with share sale

4 December 2019

Affiliate marketing giant Better Collective has raised SEK312m (£25.1m/€29.5m/$32.7m) for future M&A activity through the directed issue of 4m shares in the business.

Shares were priced at SEK78 each, while the SEK312m that Better Collective raised through the offering will be subject to certain transaction costs. The issue represents 9% of the total shares and votes in the business.

According to Better Collective, subscription in the issue was oversubscribed due to high demand from both Nordic and international institutional investors. Those investors who subscribed shares in the issue are expected to receive the shares on 6 December

“I am very pleased to see the broad-based interest from both current and new shareholders wanting to invest in our further growth,” Better Collective chief executive Jesper Søgaard (pictured) said. “Better Collective has completed seven acquisitions at a total value of over €125m since the IPO in June 2018.

“The proceeds from the transaction allow us to continue the growth path including M&A, which we believe has contributed significantly in placing Better Collective as the leading company within sports betting affiliation.”

In connection with the Issue, Better Collective agreed to a lock-up undertaking on future share issuances for 180 days, subject to certain exceptions.

As a result of the issue, Better Holding 2012 - the joint holding company of CEO Søgaard and chief operating officer Christian Kirk Rasmussen that holds some 4,528,786 shares in Better Collective – has agreed to distribute its entire direct shareholding as dividends to its two shareholders.

J. Søgaard Holding and Chr. Dam Holding, the two shareholders in Better Holding 2012, are 100% owned holding companies of Søgaard and Rasmussen, respectively.

Better Collective noted that the restructuring has not resulted in any changes to the ultimate ownership of either or Søgaard and Rasmussen, with each set to hold approximately 26.53% after the issue.

Last month, Better Collective cited acquisitions in the US and Sweden as the main reasons behind a 53.9% year-on-year increase in revenue in the third quarter to €17.1m.

Among the most recent acquisitions by Better Collective was the purchase of a 19.99% stake in gambling intelligence software solutions provider Mindway AI for DKK4m in October.