Playmaker Capital, a Toronto-based digital sports media company with brands in Canada, the US, and South America, has agreed to be acquired by top affiliate group Better Collective.

The deal has been agreed for approximately €176 million (CAD$258.6 million), with Playmaker Capital shareholders receiving CAD$0.70 for each Playmaker common share. This represents a 46% premium to Playmaker Capital’s closing common share price on Nov. 3 and a 44% premium to its 10-day volume-weighted average price per common share for the period ending on the same date, the last trading day prior to the date of the purchase announcement.

The transaction is expected to close in the first quarter of 2024, subject to approval from Playmaker shareholders, court approvals, regulatory approval, and customary closing conditions.

The acquisition is the second-largest financial venture undertaken by Better Collective after its May 2021 purchase of The Action Network for USD$240 million ($328 million). Playmaker Capital will transition to become a fully-owned subsidiary of Better Collective.

Better Collective’s move to purchase Playmaker Capital is motivated by its desire to increase its presence in the South American market. Playmaker Capital has secured a market-leading position in South America and operates the most visited sports media brands in the region. This is mainly thanks to its Futbol Sites brand, a leading portfolio of web, social, video, and podcast sites geared towards Hispanic and Latin American audiences.

Playmaker Capital posted a recorded revenue of €55 million (CAD$80.8 million) in the last 12 months, in addition to an EBITDA of €15 million (CAD$22 million). Alongside Futbol Sites, It is the operator of sports media brands like Yardbarker, Wedge, and The Nation Network.

Additionally, according to the press release announcing the acquisition, the two companies will benefit from “enhanced scale and greater levels of product, technology, and marketing investments.”

“Over the past 12 months, I have been talking a lot about a transformational deal for Playmaker and its shareholders that will take this company to the next level. Today’s announcement does exactly that, and I could not be more excited for the Playmaker family to join the Better Collective family,” said Playmaker Capital CEO Jordan Gnat.

“Acquiring Playmaker is in many ways transformational for Better Collective and will be an important milestone in our journey towards becoming the leading digital sports media group. Upon closing of the acquisition, we will be able to significantly grow our audience and reach a larger segment of generalist sports fans,” added Better Collective CEO Jesper Søgaard.