Adventure Box Expands with €15M iGaming Acquisition

Adventure Box Technology AB is set to acquire a leading iGaming marketing and affiliate company, marking a strategic move into the marketing vertical. This acquisition aims to boost the company's ability to drive high-quality traffic to its casino brands and enhance its B2B offerings.

Key Takeaways:

• Adventure Box to acquire iGaming marketing and affiliate assets for €15 million
• Acquisition expected to drive revenue growth and market presence
• Deal to be financed through debt, preserving shareholder value

Adventure Box Technology AB, a Stockholm-based company, has announced plans to acquire a portfolio of iGaming assets, including a prominent marketing and affiliate company, in a deal valued at €15 million. This strategic move represents Adventure Box's entry into the marketing and affiliate sector, positioning the company to drive high-quality traffic to its wholly-owned casino brands while complementing its existing B2B services.

The acquisition, referred to as 'Project Quantum,' is expected to significantly enhance Adventure Box's market presence and drive revenue growth. The target company has demonstrated impressive performance, with a 200% increase in Gross Gaming Revenue (GGR) over the past year. Unaudited reports indicate 2024 revenue of approximately €12.5 million and €4.5 million in EBITDA for the acquired assets.

Under the terms of the agreement, the €15 million consideration will be paid through a combination of cash and shares. The payment structure includes €7 million in cash at closing, followed by two annual cash payments of €1 million each. Additionally, €3 million in Adventure Box common shares will be issued upon closing, with two subsequent share issuances of €1.5 million each on the first and second anniversaries of the deal.

Duncan McIntyre, CEO of Adventure Box, emphasized the transformative nature of this acquisition, stating that it will provide the company with valuable marketing expertise and management talent. This strategic move is expected to strengthen Adventure Box's ability to deliver top-tier gaming experiences and drive revenue growth.

The company plans to finance this and other significant acquisitions through debt markets, leveraging the expected cash flow from these acquisitions and maintaining low total debt/EBITDA ratios post-closing. This approach aims to protect shareholder interests while supporting continued growth and expansion.

Adventure Box anticipates closing the deal by March 31, 2025, subject to customary due diligence, shareholder approval, and regulatory clearances. Upon completion, the company will integrate the new operations into its existing framework, focusing on unlocking synergies in marketing, customer engagement, and operational efficiencies.

This acquisition aligns with Adventure Box's ongoing strategy to diversify its gaming portfolio and capitalize on the rapidly expanding online casino sector. It represents a significant step in the company's evolution as a leader in the dynamic iGaming industry.