Raketech Group Holding has reached an agreement to divest its non-core US advisory business. The total sale proceeds amount to US$2.25m, settled partially on closing and via an ongoing revenue share agreement.
In December 2021, Raketech acquired the US business ATS Consultants, consisting of several high-value, lead-generating sports tipster websites, highly dependent on a manual lead conversion sales team.
Over the past year, the company has successfully increased traffic to its US tipster websites and transitioned the business model from a manual, high-touch process to a fully digital lead conversion model for multi-capper picks and predictions (MCP).
This success led to a comprehensive review of the US business operations and assets, which resulted in the decision to divest the high-touch US tipster advisory sales business. The sale aligns with the company’s strategy of focusing on its core digital strengths and maximise growth opportunities.
The company will continue to leverage its flagship US assets, Winnersandwhiners.com and Statsalt.com, along with picksandparlays.com, which together attract approximately 50 million sessions annually.
The transaction is expected to close at the latest on August 31st, 2024, latest, and the sale will result in a one-off non-cash impairment charge of approximately €10m for the US assets.
Johan Svensson, CEO of Raketech, says: “This strategic sale is an important step in streamlining our operations and focusing on our core strengths. By leveraging our high-quality US operations, our strategy is to maximize the growth potential in digitalised subscription and affiliate marketing revenues and expand our sub-affiliate marketing and partnership revenue streams.
“Despite the one-off non-cash impairment charge, we are confident that this move will enhance our focus, drive improved performance and deliver long-term sustainable growth and value creation.”
