URGENT UPDATE: Jumbo Interactive has officially completed its acquisition of US prize draw company Dream Giveaway for AUD 55.4 million ($36.3 million), marking a significant entry into the lucrative US market. The deal was finalized on October 30, 2023, enabling Jumbo to capitalize on the growing demand for lottery products in America.
With this acquisition, Jumbo Interactive, an Australian digital lottery specialist, is poised to make substantial inroads in the US charity fundraising sector. Dream Giveaway has a proven track record, boasting impressive figures with AUD 27.1 million ($17.8 million) in total transaction value and AUD 21.6 million ($14.1 million) in revenue over the past year.
The acquisition is funded through a mix of AUD 20.9 million ($13.7 million) in cash and AUD 36.9 million ($24.2 million) in debt, with additional costs bringing the total cash value to AUD 57.8 million ($37.8 million). Jumbo’s managing director, Mike Veverka, expressed confidence in Dream Giveaway’s operations, stating that their established presence will accelerate growth in the US.
“This acquisition allows us to enter the USA via a well-established and profitable operator with a strong track record,” said Veverka.
Dream Giveaway’s CEO, Ryan Maturski, will continue leading the company, ensuring a smooth transition. Maturski highlighted the growth potential under Jumbo’s management, stating it will help achieve “the next level of growth.”
In terms of financial outlook, Jumbo anticipates its new US business could deliver an EBITDA of up to $3 million. This is a promising forecast for the company as it aims to leverage its software platform and 25 years of digital marketing expertise.
In a related move, Jumbo Interactive has expanded its reach in the UK by acquiring Dream Car Giveaways, further enhancing its portfolio of successful prize draw providers. Since its inception, Dream Car Giveaways has awarded over GBP 155 million in prizes to more than 135,000 winners.
This acquisition marks a pivotal moment for Jumbo Interactive as it navigates new territories and seeks to redefine the charity lottery landscape in the United States. With Dream Giveaway’s established presence and Jumbo’s innovative strategies, the potential for growth seems boundless.
Stay tuned for further updates as Jumbo Interactive embarks on this exciting new chapter in the US market, tapping into the increasing interest in lottery products.