Winvia Entertainment (LSE:WVIA) has agreed to acquire the trade and key assets of The Online Giveaway Guys and its subsidiary Win Life Competitions for up to £19.1m in cash.
The AIM-listed prize draw and online gaming group, trading as WVIA, said the two UK digitally-led platforms generated combined gross revenue of £30.3m and adjusted EBITDA of £4.25m in the 12 months to the end of June.
The consideration comprises £15.47m payable at completion and £3.63m deferred to the first anniversary, plus a potential earnout on the second anniversary calculated at 2.1 times achieved adjusted EBITDA less the deferred sum.
TOGG, trading as The Giveaway Guys since 2020, has built a loyal UK prize draw following, while Win Life is a newer brand centred on campervan draws with a strong base of recurring revenue.
The deal is conditional on transferring key supplier agreements, expected by the end of October, and will be funded from Winvia's existing cash.
It follows the £11.8m acquisition of Rev Comps in May, which completed in August and was migrated onto Winvia's technology platform alongside the launch of its first B2B partnership, "Villa Win" with Aston Villa.
Winvia reported net cash of approximately £31.8m as at 30 June and has since secured a £33m term loan and £5m revolving facility with Barclays to support further consolidation in the fragmented UK prize draw sector.
Chief executive Mihai Manoila called the acquisition "another significant step in delivering our strategy to build a leading position in the UK prize draw market", pointing to "attractive economics and significant growth potential".
Winvia expects the deal to be earnings enhancing in its first full financial year following completion, targeted for the end of October.