Raketech acquires Infinileads
Through the acquisition of Infinileads, Raketech takes position on several Latin American emerging markets such as Argentina, Mexico and Peru in addition to current Infinileads core markets Spain, Italy and Portugal.
As a result of the acquisition, Raketech’s revenues within these regions are expected to reach approximately 5% of the group’s total revenues, in Q4 of this year.
The agreed purchase price amounts to €4.5m on a cash- and debt-free basis which will be payable in two installments, €2.5m as per closing (31 July 2021) and €2m as per 31 January 2022 with a possibility of additional earnout payments based on certain performance measures over a period of 24 months after the deal closes.
The acquisition will have a positive cash contribution from closing and the earn out is capped at a maximum of €4m. The purchase price represents a multiple of approximately 3.8x earnings before interest, tax, depreciation and amortisation (EBITDA) and 3x revenues on the current run rate.
Infinileads offers an extensive free-to-play casino game library driving high user engagement. Infinileads’s proprietary free-to-play module is expected to bring synergies to Raketech’s free-to-play portfolio in order to further accelerate gamification within Raketech’s product portfolio as well as opening the doors to additional revenues by offering relevant marketing solutions also to game providers and game studios. The founders of Infinileads will continue to be involved in the operations and use their experience to support Raketech’s rollout of additional products in new and existing markets over a period of 24 months.
Oskar Mühlbach, CEO of Raketech said: “With the acquisition of Infinileads, we significantly increase our geographical footprint, taking strong positions on the emerging Latin American market as well as Southern Europe.
“Infinileads scalable product portfolio aligns well with our scalable platform strategy and they have proven that with relative low investments and short go-to-market time, it is possible to take significant positions on emerging markets. I am very happy that with the help of the Infinileads team, we can continue to scale the Free-to-play concept to several new markets”.