Gambling.com Group (GAMB) caused a stir last week with its plans to acquire Odds Holdings. The transaction, valued at up to $160 million (£126 million), begins with an initial $80 million payment.
Through this acquisition, GAMB will take ownership of the OddsJam brand and integrate the entire Odds Holdings team, marking its largest merger and acquisition to date. The remaining $80 million will be contingent on OddsJam doubling its EBITDA by the end of 2026, with an anticipated $12 million in earnings for 2024.
Despite challenges in the affiliate sector impacting other companies, GAMB has seen its shares rise by 106% to $15.95 in the last six months. In this interview, EGR discusses with GAMB CEO Charles Gillespie the significance of this acquisition, as well as Odds Holdings founders Ankit Goyal and Alex Monahan, and OddsJam CEO Matt Restivo about the transition into a major public company.
**EGR: Congratulations on the acquisition. GAMB has been selective with its mergers. What makes Odds Holdings an essential addition to the group?**
**Charles Gillespie (CG):** This acquisition aligns perfectly with our goals. We aim to expand beyond pure affiliate services while staying true to our core, focusing on end-users and partners. We seek stable subscription revenue, given our public listing in the US, North American revenue, and an exceptional team with top-notch technology. Without relying heavily on SEO, we look for companies adept at marketing and growth, which can benefit from our SEO capabilities. This deal offers all that.
**EGR: With an $80 million outlay, this is GAMB’s largest deal to date. Does this size present specific challenges or expectations?**
**CG:** Larger deals like this can actually be easier, as they garner more attention and involve our best team in due diligence, legal, and tax consulting compared to multiple smaller, tedious deals. Bigger targets typically have more sophisticated financial processes and talented teams. Their size also significantly impacts our consolidated figures, unlike smaller deals.
**EGR: How is Odds Holdings positioned to double its EBITDA by 2026?**
**CG:** Our press release stated “at least double.” The OddsJam team has rapidly built a high-growth business. Kevin McCrystle and I are excited about the energy they will bring. While we excel in online gambling affiliations, we have intellectually curious individuals seeking fresh challenges. OddsJam gives us a platform for innovative growth and new product development.
**EGR: How will integrating Odds Holdings with GAMB enhance existing partnerships?**
**CG:** OddsJam also runs an enterprise business, primarily serving the US. We plan to expand this offering globally, particularly in Europe, leveraging our deep-rooted connections with many European operators.
**EGR: Does this acquisition reflect changes in US sports betting consumer behavior?**
**CG:** No, the US sports bettor has always sought an advantage, unlike across the Atlantic, where sports betting is seen more as entertainment. Different markets require different products and strategies.
**EGR: Why was it the right moment to sell the business to GAMB?**
**Ankit Goyal (AG):** Our growth necessitated aligning with a global leader. Gambling.com Group’s extensive market reach and infrastructure allow us to further scale and improve our offerings.
**EGR: How will your roles evolve post-acquisition?**
**Alex Monahan (AM):** My focus remains on growing OddsJam as a leading platform for sports bettors, delivering insights for smart betting decisions. With GAMB, I aim to expand our reach and user engagement while innovating industry-leading tools and resources.
**AG:** My role has expanded over time to include strategic initiatives, product growth, and M&A. Post-acquisition, I will focus on expanding enterprise offerings and identifying revenue synergies, enhancing Odds Holdings within GAMB to achieve ambitious EBITDA targets.
**EGR: What excites you about joining GAMB?**
**AM and AG:** Joining GAMB offers immense opportunities. Our technology combined with their market expertise will drive significant advancements in sports betting, enriching what we offer our customers.
**EGR: How do you foresee changes in daily operations at Odds Holdings?**
**Matt Restivo (MR):** Initially, not much will change, but over time, we’ll integrate with GAMB. We blend well together, like Tetris pieces, and I look forward to using our customer acquisition expertise to benefit the entire group.
**EGR: What tools or expertise from GAMB are you eager to utilize?**
**MR:** We run a lean operation, and I’m interested in integrating our financial planning and analysis with theirs for added sophistication in public company management.
**EGR: What insights will you bring from your past experiences to assimilate OddsJam into GAMB?**
**MR:** Transitioning into a larger public company involves inherent challenges, yet fostering a culture of openness and transparency helps teams adapt efficiently to new changes.
The post *Q&A: Gambling.com Group CEO and Odds Holdings leaders on their $160m M&A deal* was initially published on [EGR Intel](https://www.egr.global/intel).