Jumbo Interactive (JIN) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition enables entry into the fast-growing UK prize draw market, broadening international B2C presence and diversifying revenue streams.

• Targets a younger, digitally native customer base seeking engaging online experiences.

• Leverages proven technology, marketing, and operational capabilities to accelerate growth.

• DCG is a market leader with a strong brand, profitable, and scalable business model.

• The acquisition enables diversification and accelerates international expansion, especially outside Australia.

Financial terms and conditions

• Enterprise value of A$109.9 million (£53.9 million), with upfront cash of A$75.2 million (£36.9 million), equity of A$10.2 million (£5.0 million), and an earnout up to A$24.5 million (£12.0 million) post-December 2026.

• Total consideration could reach A$134.2 million (£65.8 million), funded through cash reserves, equity, and an upsized debt facility.

• Acquisition multiple is 6.5x adjusted EBITDA, based on £8.3 million EBITDA for the 12 months ended April 2025.

• Funded via a mix of cash, new shares, and an upsized debt facility (up to A$120 million).

• DCG expected to have A$22 million in cash post-completion.

Synergies and expected cost savings

• Expected to deliver double-digit EPS accretion in the first 12 months post-completion.

• Integration of proprietary marketing technology, data insights, and operational capabilities expected to drive growth.

• Value protection, enablement, and creation strategies will be applied to scale the business and enhance customer engagement.

• Jumbo’s expertise in software, marketing, and customer management anticipated to accelerate DCG’s growth.