The prominent Danish sports wagering firm, Better Collective, has strengthened its American foothold by purchasing the outstanding shares of the fantasy sports platform, RotoGrinders. This action follows Better Collective’s initial acquisition of a 60% ownership in the Nashville-based enterprise back in 2019.
The total purchase price for Better Collective reached €55 million, a sum equivalent to 7.5 times RotoGrinders’ anticipated EBITDA for 2021. The ultimate cost could vary depending on RotoGrinders’ year-end results.
This calculated maneuver emphasizes Better Collective’s ambitious expansion goals within the flourishing US sports wagering sector. RotoGrinders, with its ten-year history and notable growth pattern in daily fantasy sports, provides a strong foundation for Better Collective to connect with an enthusiastic and expanding American audience.
RotoGrinders’ Chief Executive Officer, Cal Spears, conveyed his excitement regarding the acquisition, underscoring the substantial progress the company has achieved since joining forces with Better Collective. He stressed the smooth incorporation of RotoGrinders’ 50+ strong workforce into Better Collective’s US operations.
This acquisition represents a major strategic move in the US sports betting landscape, with Better Collective utilizing RotoGrinders’ established presence to further solidify its standing in this profitable market.
This action gave Better Collective an initial 60% ownership in the business, putting it on a fast-track expansion trajectory. RotoGrinders had increased its income by more than double from 2019 to 2021, while its EBITDA had surged by an astounding 4.4 times, resulting in an incredible 109% compound yearly growth rate. Due to this accomplishment, the Danish media conglomerate exercised its option to purchase the remaining 40% of RotoGrinders sooner than originally anticipated.
Marc Pedersen, the Chief Executive Officer of Better Collective US, expressed his delight, stating, “We are ecstatic to finalize the complete purchase of the RotoGrinders Network ahead of time. The RotoGrinders staff has greatly amazed us since our first investment, and we are eager to officially welcome them into the Better Collective organization and start taking advantage of all the cooperative possibilities.”