BREAKING: Australian iLottery giant Jumbo Interactive has officially completed its AUD 55.4 million (approximately $36.3 million) acquisition of US prize draw company Dream Giveaway, marking a significant entry into the booming US lottery market. This monumental deal was finalized on October 30, 2023, positioning Jumbo to leverage the growing demand for lottery products across America.
The acquisition allows Jumbo Interactive to tap into Dream Giveaway’s established presence in the charity fundraising sector, facilitating rapid growth and market penetration in the United States. According to company reports, Dream Giveaway has a proven track record, generating AUD 27.1 million (around $17.8 million) in total transaction value and AUD 21.6 million (approximately $14.1 million) in revenue over the last 12 months ending July 31, 2023. This translates to an impressive adjusted EBITDA of AUD 7.1 million (about $4.7 million), representing an acquisition multiple of roughly 7.8x.
Mike Veverka, Managing Director of Jumbo Interactive, expressed confidence in the strategic move, emphasizing that the acquisition will accelerate their entry into the US market through a well-established and profitable operator. “This allows us to accelerate the business with our software platform and 25 years of digital marketing expertise,” he stated.
Dream Giveaway’s management will remain intact, with Ryan Maturski continuing as CEO, ensuring stability during this transition. Maturski also shared his enthusiasm about the acquisition, highlighting the potential for enhanced growth under Jumbo’s guidance. “We are excited to take Dream Giveaway to the next level with Jumbo’s experienced management,” he remarked.
In addition to its US expansion, Jumbo Interactive has broadened its footprint in the UK by acquiring Dream Car Giveaways, a leading prize draw provider that has awarded over GBP 155 million in prizes to more than 135,000 winners since its inception. This dual-market strategy signals Jumbo’s commitment to expanding its influence in lucrative lottery markets worldwide.
As Jumbo Interactive gears up for this new chapter, industry analysts are watching closely to see how this acquisition will reshape the landscape of lottery offerings in both the US and UK. The expected EBITDA from the US operations could reach up to $3 million, further solidifying Jumbo’s position as a key player in the digital lottery space.
Stay tuned for more updates on this developing story as Jumbo Interactive embarks on its ambitious journey into the American lottery market.
