Gambling affiliate Raketech has announced the sale of advisory business ATS Consultants Inc. for $2.25 million. Raketech acquired the company in December 2021, gaining several high-value, lead-generating sports tipster websites.
Over the past year, Raketech successfully boosted traffic by transitioning these sites to a fully digital lead-conversion model focused on multi-capper picks and predictions.
In the second quarter of 2024, the company conducted a comprehensive review of its U.S. operations and assets, revealing the potential for increased U.S. digital subscription revenues and greater affiliation revenues from the tipster sites. As a result, Raketech decided to divest its high-touch U.S. tipster advisory sales arm to focus on its core digital strengths and maximize growth opportunities.
“This strategic sale is an important step in streamlining our operations and focusing on our core strengths. By leveraging our high-quality U.S. operations, our strategy is to maximize the growth potential in digitalized subscription and affiliate marketing revenues and expand our sub-affiliate marketing and partnership revenue streams,” said Johan Svensson, CEO of Raketech.
“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."
The acquisition is expected to close by Aug. 31 at the latest, and will result in a one-off cash impairment charge of roughly €10 million (a bit over US$10.8 million). Raketech will continue to leverage its flagship U.S. assets, sites that draw in approximately 50 million sessions each year.
