Better Collective to acquire Playmaker Capital in $188M deal, expected to be completed in Q1 2024

Better Collective has entered into a definitive agreement to acquire Playmaker Capital in a deal valued at approximately $187.9 million (€176 million). The acquisition is set to be completed in the first quarter of 2024.

Under the terms of the agreement, Playmaker shareholders will have the option to receive, for each common share held, either $0.51 (CAD $0.70) in cash, 0.0206 ordinary shares of Better Collective, or a combination of $0.18 (CAD $0.245) in cash and 0.0134 ordinary shares of Better Collective.

Jordan Gnat, CEO of Playmaker, stated: "Over the past 12 months, I have been talking a lot about a transformational deal for Playmaker and its shareholders that will take this company to the next level. Today’s announcement does exactly that, and I could not be more excited for the Playmaker family to join the Better Collective family."

Jordan Gnat, CEO of Playmaker

Jesper Søgaard, Co-founder and CEO of Better Collective, added: "Upon closing of the acquisition, we will significantly grow our audience and reach a larger segment of generalist sports fans. For years, Playmaker Capital has built incredibly strong sports media brands and excited sports fans across the Americas with high-quality sports content, cultivating a loyal and dedicated following."

Jesper Søgaard, Co-founder and CEO of Better Collective

The transaction will be funded through a combination of cash and shares, with 65% of the consideration payable in Better Collective ordinary shares and 35% in cash. Better Collective plans to revisit its financial targets for 2023-2027 upon completion of the acquisition.

Playmaker Capital, a Toronto-based digital sports media company, has a portfolio of sports media brands and delivers content experiences to engage sports fans. These brands will be integrated into Better Collective.

The deal is structured as an arrangement under the Business Corporations Act (Ontario) and is subject to approval by Playmaker shareholders, regulatory approvals, and customary closing conditions. It is not contingent on any financing conditions.

Upon closing, Better Collective aims to grow its audience across the Americas, particularly among generalist sports fans, and secure a leading position in South America with the acquisition of some of the most visited sports media brands in the region. 

Playmaker Capital, a digital sports media company, went public on May 31, 2021, following a qualifying transaction by CPC Apolo III Acquisition, which valued the company at $45 million. As of August 30, 2023, Playmaker Capital had 229,486,140 common shares, 8,360,000 options with a weighted-average exercise price of CDN $0.3368, and 4,074,698 RSUs outstanding.

The acquisition is expected to provide both Better Collective and Playmaker with enhanced scale, increased product, technology, and marketing investments. The transaction will also lead to overall product, geographic, and demographic diversification, offering operational synergies and monetization enhancements in the company's business.

The transaction is subject to approval from 2/3 of Playmaker shareholders and regulatory authorities, including certain U.S. gaming authorities and the Investment Canada Act.

Playmaker's board of directors unanimously recommends that shareholders vote in favor of the transaction, and Canaccord Genuity has delivered a fairness opinion stating that the consideration received under the arrangement is fair to Playmaker shareholders (other than certain affiliates).