Raketech, a leading online affiliate and content marketing company, announced that it has struck a deal to sell its non-core US advisory business. The business, ATS Consultants, was originally acquired in 2021 but deemed to non-core to the group.
Raketech’s US advisory business in question, consisted of several high-value lead-generating sports tipster websites which were highly dependent on a manual lead conversion sales team. Over the past year, Raketech said, it has successfully increased traffic to its tipster websites in the United States, transitioning to a fully digital lead conversion model for multi-capper picks and predictions.
As a result of these changes, Raketech initiated a comprehensive review of its US business. In the end, the group determined that its high-touch US tipster advisory sales business is no longer as beneficial to the company.
According to Raketech’s announcement, the total sale proceeds amount to $2.25 million. A part of the sum will be paid out at the closing on the deal, while the rest is subject to an ongoing revenue share agreement.
The deal is expected to close by August 31 this year.
Raketech Wants to Streamline Its Operations
The sale, Raketech said, aligns with its strategy to “focus on its core digital strengths and maximize growth opportunities.”
In summary, Raketech’s review, completed in Q2 2024, highlighted the potential for US digital subscription revenues. Following an increase in MCP sales and higher affiliation marketing revenue from US sportsbooks, Raketech concluded that its high-touch advisory operations are underperforming and non-core.
In addition to the $2.25 million Raketech will get for the sale, it has also signed an exclusive lead generation agreement, guaranteeing a minimum fee of $250,000 over the next 12 months.
In the meantime, Raketech will continue to leverage its flagship US asstets, which include websites such as Winnersandwhiners.com, Statsalt.com and picksandparlays.com. With a combined traffic of approximately 50 million sessions a year, these businesses
Raketech’s chief executive officer, Johan Svensson, explained that this is a strategic sale and an important step in streamlining the company’s operations.
By leveraging our high-quality US operations, our strategy is to maximize the growth potential in digitalized subscription and affiliate marketing revenues and expand our sub-affiliate marketing and partnership revenue streams.
Johan Svensson, CEO, Raketech
Svensson concluded that his team is confident that the sale will enhance his company’s drive and performance.
