Gambling.com Rolls The Dice On OddsJam's Parent; $80M Upfront Consideration For Instant Revenue Boost

Gambling.com Group Limited GAMB shares are trading higher after the company inked a deal to acquire Odds Holdings.

Odds is the parent company of OddsJam, which provides a suite of tools and services designed to assist in sports betting.

The deal includes an initial consideration of $80 million, with up to an additional $80 million contingent on business performance through 2026.

The initial purchase consideration comprises $70 million in cash and $10 million in Gambling.com Group ordinary shares. The cash portion will be funded through the company’s expanded credit facility.

The company says that to earn the full $80 million in contingent consideration, Adjusted EBITDA from Odds Holdings assets must at least double in 2026 compared to 2024.

Gambling.com has the discretion to settle up to 50% of the contingent consideration in ordinary shares.

This acquisition enhances Gambling.com’s presence in the online gambling market, adding complementary recurring revenue streams from new and existing users and partners.

The acquisition of Odds Holdings is expected to close on January 1, 2025, subject to customary conditions, and will be immediately accretive to Gambling.com Group’s results.

Odds Holdings projects 2024 revenue of approximately $26 million and Adjusted EBITDA of $12 million.

Gambling.com Group anticipates at least 20% growth in Adjusted EBITDA from Odds Holdings assets in 2025 under its management.

As part of the transaction, Gambling.com secured a $100 million senior secured term loan and revolving credit facility commitment from Wells Fargo, amending its existing credit agreement.

Gambling.com Group co-founder and CEO Charles Gillespie said, “We are delighted to welcome the Odds Holdings team to Gambling.com Group as we accelerate growth towards our goal of $100 million in Adjusted EBITDA.”

”Their talented team has not only built a state-of-the art odds technology platform, but managed to build multiple distinct products on top of that platform which have very clear product-market fit. Odds Holdings gives Gambling.com Group a suite of new enterprise products while OddsJam in particular brings a passionate and energetic new consumer audience to the Group.”

As of September 30, 2024, cash and cash equivalents stood at $15.7 million.

Investors can gain exposure to the stock via AdvisorShares Trust AdvisorShares Vice ETF VICE.

Price Action: GAMB shares are up 11.3% at $14.77 at the last check Thursday.

Read Next:

• Michael Saylor Lauds Bitcoin’s $100,000 Milestone: ‘It Will Be Embraced’ By The World’s Wealthy And Powerful

Photo via Shutterstock.