Better Collective has acquired Playmaker Capital for €176 million, marking a significant move for the company. The purchase agreement is expected to be finalized in the first quarter of the following year.
This acquisition will position Better Collective as the market leader in the South American region and enhance its presence in North America. The company plans to finance the acquisition with 65% stocks and 35% cash. After the deal is completed, Better Collective will adjust its financial targets for the years 2023 to 2027.
Playmaker Capital, based in Toronto, has its stakes listed on the OTCQX in the US and the TSX Venture Exchange in Canada. The company owns popular sports media brands such as Yardbarker, Futbolsites.net, and the Nation Network, all of which will be acquired by Better Collective.
The acquisition will allow Better Collective to benefit from improved scale and increased investments in technology, product development, and marketing. The company is also projected to expand its audience of sports enthusiasts in America as a result of this acquisition.
Under the terms of the transaction, Playmaker’s common stockholders will receive CA$0.70 per share. The two largest shareholders of Playmaker, JPG Investments and Relay Investments, who collectively own 24% of the stakes, will invest a portion of their Playmaker stakes in exchange for Better Collective shares.
The sale will consist of approximately 75% of Better’s stakes and 25% cash. Both shareholders have signed lock-up agreements that restrict the sale of their Better Collective stakes for a specified period.
After a 12-month process, Playmaker Capital’s co-founder and CEO, Jordan Gnat, expressed excitement about the acquisition, stating, “Today’s announcement does exactly that and I could not be more excited for the Playmaker family to join the Better Collective family.”
Jesper Søgaard, co-founder and CEO of Better Collective, also expressed enthusiasm, saying, “The deal will be an important milestone in the company’s digital sports media journey.”
Upon closing the acquisition, Better Collective expects to significantly increase its audience and reach a larger segment of generalist sports fans. Søgaard added, “Saying that I am excited to welcome the new team to the Better Collective group would be an understatement.”