Catena Media to target US amid sale of AskGamblers brand for €45m to GiG
Affiliate agrees deal with Malta-headquartered firm following conclusion of strategic review with further sales mooted in financial trading business
Catena Media has confirmed that following a strategic review, it will switch its focus away from its traditional affiliate markets in Europe as part of its efforts to target the North American market.
The declaration follows the confirmation of sale of the affiliate’s AskGamblers subsidiary to Gaming Innovation Group (GiG) for a total cost of €45m ($47.7m).
Catena first revealed it had been approached by other parties interested in acquiring the AskGamblers brand in May, with the firm also confirming interest in other “global brands” and assets in its financial trading segment.
The interest prompted the Malta-based affiliate to trigger a strategic review in that part of the business, aiming to understand the “best outcomes” for Catena and its shareholders over the longer term.
Updating the markets on this review, Catena suggested its deliberations had left the business with a “clear focus” on the more lucrative North American market.
“The group intends to continue streamlining the business in line with this focus,” Catena said in a statement
“This includes divesting from markets and assets, such as the financial trading brands and the group’s remaining European brands, which third parties have shown interest in acquiring. These approaches are currently under evaluation,” the firm added.
Expanding on this rationale Catena Media CEO Michael Daly highlighted the “even stronger” financial position afforded by the AskGamblers sale, which would allow the firm to broaden its exposure and access to the US capital markets.
“Today’s agreement is a major step on our journey to focus the business on online sports betting and casino affiliation in high-growth, regulated markets in the Americas,” Daly said.
“I am confident that in Gaming Innovation Group we have found a buyer that will provide a strong environment for AskGamblers and the other brands and their talented people to develop and grow,” he added.
Elsewhere, rival affiliate XLMedia confirmed its own potential sale, with the group’s faltering personal finance assets priced to go as part of a business restructure.
Updating the markets, the affiliate said it had made the decision to “prioritise resource allocation” to its core businesses with a potential focus on “fully capturing” the potential of the US market, generating value for shareholders.
The affiliate also revealed it would hold a capital markets day on February 1, 2023.