STOCKHOLM: Adventure Box Technology AB (STO: ADVBOX) announced a non-binding Letter of Intent (LOI) to acquire a portfolio of iGaming assets, including a leading marketing and affiliate company, Project Quantum.
The acquisition marks Adventure Box’s entrance into the marketing and affiliate vertical, driving high-quality traffic to its casino brands while complementing its existing B2B offerings.
The acquisition is expected to enhance Adventure Box’s market presence, boost revenue and profits, and drive long-term growth. The final corporate structure is being finalized, with the acquisition expected to be financed with debt.
This acquisition aligns with Adventure Box’s strategy to diversify its gaming portfolio and capitalize on the growing online casino sector. The innovative marketing approach and partnerships with leading casino brands have driven a 200% increase in Gross Gaming Revenue (GGR) over the past year.
Project Quantum’s unaudited management reports indicate a 2024 revenue of approximately €12.5 million and €4.5 million of EBITDA. All financial figures will be confirmed by third-party auditors prior to closing. Through this acquisition, Adventure Box will gain digital marketing expertise, expanding its market reach and positioning the combined entity for accelerated growth.
Under the agreement, the total consideration for the assets and intellectual property is €15 million, to be paid in various installments: €7 million in cash payable at closing; €1 million in cash on the 12-month anniversary; €1 million in cash on the 24-month anniversary; €3 million in common shares of Adventure Box upon closing; €1.5 million in shares on the 12-month anniversary; and €1.5 million in shares on the 24-month anniversary. The deal is expected to close by March 31, 2025, subject to due diligence and shareholder and regulatory approvals.
“This planned acquisition is a transformative step for Adventure Box,” said Duncan McIntyre, CEO of Adventure Box. “Integrating these iGaming and marketing assets into our portfolio provides us with invaluable marketing expertise and management talent, strengthening our ability to deliver best-in-class gaming experiences and drive revenue growth. This acquisition enhances value for our customers and partners and lays the foundation for sustainable expansion. We are committed to financing significant acquisitions through debt markets given the expected cash flow from these acquisitions and our low total debt/EBITDA ratios post-closing. We are evaluating various debt proposals to support our continued growth and expansion.”
Upon completion, Adventure Box will integrate operations into its existing framework, ensuring a smooth transition for customers and partners. The acquisition will unlock synergies in marketing, customer engagement, and operational efficiencies, reinforcing Adventure Box’s position as a leader in the evolving gaming industry.