Better Collective secures DKK300m for M&A war chest

21 June 2019

Stockholm-listed Better Collective has established a new credit facility worth DKK300m (£35.8m/€40.2m/$45.4m) with Nordea Bank to support its ongoing merger and acquisition efforts.

Since its initial public offering (IPO) last year, the affiliate marketing giant has invested over €100m in acquisitions, financed by a combination of proceeds from the IPO, cash flow from operations and bank credit lines with Nordea.

Recent M&A activity includes last month’s €16m cash purchase of daily fantasy and sports wagering affiliate Rical LLC, the operator of the RotoGrinders and SportsHandle portals.

Following the new credit agreement, Better Collective now has DKK600m in total credit facilities in place with Nordea.

“Since the IPO, we have executed on the M&A-strategy which was the essential part of the intended use of the IPO-proceeds,” Better Collective chief financial officer, Flemming Pedersen, said.

“The acquisitions and the organic growth combined have increased the operational earnings to a whole new level, that allows for further debt leverage.

“We continue to see many interesting acquisition opportunities, and we consider bank financing to be the most attractive way of funding these activities. We want to continue the growth of Better Collective, and the strong support from our main bank, Nordea, is an important factor in this journey.”

Image: Howard Lake