Raketech has secured a one-year revolving credit facility with Avida Finans for a total of €15 million, enabling the firm to continue embarking on strategic acquisitions.
Interest on the facility – which replaces an existing facility with Swedbank of €10 million – stands at 4.25%, in addition to an annual upfront commitment fee.
Furthermore, as well as assisting the firm with conducting its long-term acquisitions strategy, the credit facility will also be used for the financing of working capital, other investments and ‘general corporate purposes’.
“We are delighted to enter into this new relationship with Avida Finans and take advantage of the strong debt markets to strengthen our financial flexibility,” said Oskar Mühlbach, CEO of Raketech.
“The new agreement offers beneficial terms and enables us to keep a high pace in our M&A activities to propel our group growth in strategically important markets”.
Acquisitions have played a key role in Raketech’s commercial outlook over the past year, with the takeovers of AmericanGambler and Lead Republik identified as key revenue drivers in the firm’s Q1 2021 report.
Although increasing expenditure to €2.9 million (2020: €1.6 million), the operator reported that the acquisitions assisted it with boosting its revenues to €8.3 million (Q1 2020: €6.5 million), whilst earnings derived from sports increased to 17% of group trading – representing an annual increase of 27%.
The €1.4 million acquisition of Malta-registered igaming affiliate network Lead Republik in particular enabled Raktech to access markets in Canada, Germany and New Zealand, and was expected to result in the firm’s revenue outside the Nordics to account for 20% of total group earnings.