Catena Media acquires UK-based affiliate assets – strengthens its position within social media advertising

Catena Media continues to establish its strong and fast growing position on the
European lead generation market within iGaming. Through the acquisition of SBAT,
a UK-based social media sports news, betting and tips website, Catena Media will
strengthen its focus on sports as well as its social media know-how. The
purchase price amounts to an upfront payment of EUR 3.2 million with an
additional earn-out of maximum of EUR 10.5 million.
Catena Media acquires the essential assets including website, technology and 15
employees from SBAT’s founder Gary Gillies. The assets current revenue run rate
is around EUR 400.000 per quarter, with an operating margin of around 55%. The
generated revenues come from the UK and strengthen Catena Media´s position in
regulated markets. The acquired domains and accounts focus both on paid and
organic traffic, and will thereby have a direct positive effect on Catena
Media´s Paid and Organic revenues as of the consolidation date 7 October 2016.
The earn-out purchase price of maximum EUR 10.5 million is based on revenue
performance over a period of two years, and the targets are aggressive in
nature. In a reasonably expected scenario with a total earn-out purchase price
of EUR 4.5 million, the seller needs to generate revenue growth between 150 and
200 percent during the period.

After the transaction, Catena Media will integrate SBAT within Catena Media UK
in order to utilize the synergies between the two operations.

“We are very pleased with this strategic acquisition as it strengthens and
diversifies our Paid media position, as well as our social media capabilities.
The focus on sports and regulated markets, and its exciting product portfolio is
a perfect fit. SBAT will complement our existing operations with strong
potential synergies, at the same time as we continue to diversify our revenue
base”, says Robert Andersson, CEO of Catena Media.

“We are really looking forward to become part of Catena Media as this is a
company that is actively driving innovation and that is in the forefront within
lead generation. We really look forward to work together”, says Gary Gillies,
founder and CEO of SBAT.

For further information, please contact:

Robert Andersson, CEO, phone: +356 770 329 28, e-mail: robert@catenamedia.com
www.catenamedia.com

This information is information that Catena Media p.l.c is obliged to make
public pursuant to the EU Market Abuse Regulation. The information was submitted
for publication, through the agency of the contact person set out above, on
October 4, 2016 at 08.00 CET.

About Catena Media

Catena Media is a fast growing online performance marketing and lead generation
company within iGaming. The Group has established a leading market position
through strong organic growth and acquisitions in its core markets. Catena Media
was listed on Nasdaq Stockholm First North Premier in February 2016. By the end
of the second quarter 2016, the company’s revenues reached approximately EUR
27.0 million on a twelve-month basis. The Group was founded in 2012 and has
today more than 150 employees and the Group Head Office is situated in Malta.