Catena Media acquires affiliate network in Italy and Belgium

Catena Media continues to strengthen its position as Europe’s fastest growing
company in lead generation through the acquisition of a number of casino
comparison websites. The network operates in new markets for Catena Media that
are regulated and have licensed operators.

The Network in question was previously owned and run by one Belgian and two
Swedish individuals with extensive experience in the gambling industry. Through
this acquisition, Catena Media is expanding its geographic reach to include
gambling portals that are focussed on Belgium and Italy. The websites focus on
casino comparison and revenue is generated solely from regulated markets with
licensed operators.

“The portfolio that we are acquiring has agreements with licensed operators in
regulated markets and is an excellent fit with Catena Media’s existing
portfolio. It is fully in line with our previously announced strategy of moving
into new markets and of growing through acquisitions,” says Robert Andersson,
CEO of Catena Media.

The portfolio being acquired is expected to generate sales of approximately EUR
300,000 in the first quarter of 2016 and a pre-tax profit margin of about 80%.
In total, the network creates about 1,000 new depositing customers each month.

The purchase price for the acquisition is EUR 3,000,000, which is being paid as
a cash consideration in conjunction with the transfer of the assets. In
addition, there is an earnout amount payable to the sellers based on revenue
generated over the next two years. The earnout amount will not be higher than
the revenue generated and is capped at EUR 3,000,000 per year, with a maximum
total earnout of EUR 6,000,000. This entails that the sellers will continue to
work with the websites for a period of at least two years.

“It is extremely exciting to start this collaboration with Catena Media and, at
the same time, to continue working with the team we have built up over a number
of years,” says Eric Stööp, one of the owners of the websites that Catena Media
is currently acquiring.

The agreement was signed on 13 March 2016 and the takeover of the websites will
be done immediately. All revenue generated by the portfolio in March will accrue
to Catena Media.

About Catena Media

Catena Media was founded in 2012 and is engaged in online performance marketing
and lead generation and is almost exclusively active within the iGaming
industry. The group thereby attracts users from multiple online and mobile
channels and directs them to the group’s B2B customers mainly consisting of
iGaming operators. The group focuses on the iGaming industry, and primarily on
iGaming operators who operate online casinos on their own websites. iGaming
operators typically use a network of marketing partners, known as affiliates, to
promote their products and services and thus attract more end users to their
websites. iGaming operators remunerate the affiliates for each end-user they
refer to them, through such websites as www.johnslots.com/sv/ and
www.rightcasino.com. The group’s Core Focus Markets are Sweden, Norway, Finland,
the Netherlands and the United Kingdom. The group has approximately 80 employees
and has its registered office in Sliema, Malta.

For more information

Robert Andersson, CEO, +356 770 329 28 Patrik Bloch, CFO, +356 995 502 46
www.catenamedia.com

The information was submitted for publication at 08.00 CET on 14 March 2016.
Avanza is the Company’s Certified Advisor.