The deal could see Jumbo Interactive pay up to AU$109.9 million.
Jumbo Interactive has completed the acquisition of digital prize draw competition platform Dream Car Giveaways (DCG) in a deal that marks its entrance into the UK prize draw market.
Under the agreement, Australian operator Jumbo Interactive will pay AU$109.9 million (US$71.6 million) to secure ownership of the DCG business. This includes $75.2 million up front, $10.2 million in equity and $24.5 million in earn-out payments.
B2C-facing brand DCG offers players the chance to win prizes, such as cars, cash, property and lifestyle products. Jumbo Interactive said the addition of DCG to its business fits in with its wider growth and diversification strategy.
Jumbo Interactive targets ‘internet savvy’ players
The acquisition establishes a B2C footprint for Jumbo Interactive in the UK. The group noted DCG appeals to “younger, digitally native customers”. It also referenced a “proven business model, a strong growth trajectory and attractive financial returns”.
It added that the deal provides the opportunity to leverage its technology, marketing and operational capabilities to accelerate DCG’s growth.
“DCG has become a trusted leader in the UK’s B2C prize draw sector, which is meeting the rising demand from younger, internet savvy consumers seeking unique products in an engaging digital format,” Jumbo Managing Director, CEO and Founder Mike Veverka said.
“Jumbo’s two decades of B2C success in Australia and its world-class software, marketing and customer management expertise, provides DCG w