Raketech, the affiliate and content marketing company, has taken the next step in its geographical expansion with the acquisition of Casumba Media Ltd.
As a Maltese registered media company, with operations mainly in Japan, they have offered an extensive amount of affiliate websites in the Japanese market. The agreed purchase has come to a price of EUR 2.0 million, representing a multiple of approximately 3x EBITDA for the last twelve months, with the possibility of additional payments based on certain performance measures.
Part of the earnout is capped up to a maximum of EUR 2.1m until 31 December 2021, and part of the earnout is uncapped, based on future performance up until 31 July 2024. The acquisition at closing will be settled using Raketech’s current cash balance. Part of the earnout can be settled by Raketech’s own shares.
As a result of the acquisition, Raketech’s revenues outside the Nordics are expected to reach approximately 10 percent of total revenue.
Through the acquisition, Raketech gets an immediate footprint in Japan as an emerging market in iGaming which attracts big interest from many of Raketech’s partners. The founders of Casumba will continue to be involved in the operations and use their know-how to support Raketech to roll out products in Japan as well as other Asian markets in the long-term.
Raketech’s technical strength and experience will be used to further optimise the assets of Casumba to facilitate organic growth.
Michael Holmberg, CEO of Raketech said: “This is another milestone in Raketech’s history and fully in line with our strategy to expand into new markets.
“We see many operators looking at Japan and this acquisition is an opportunity for Raketech to take part of an emerging market where our customers want to grow. We look forward to working together with the Casumba team to develop the products and in the long run launch new products together.”