Jumbo Interactive Acquires Dream Giveaway for $36M, Enters U.S. Market
URGENT UPDATE: Australian iLottery leader Jumbo Interactive has just finalized a significant acquisition, purchasing US-based prize draw company Dream Giveaway for AUD 55.4 million (approximately USD $36.3 million). This strategic move, announced on October 30, 2023, marks Jumbo’s bold entry into the lucrative U.S. lottery market, capitalizing on the soaring demand for innovative lottery products.
With this acquisition, Jumbo Interactive is poised to leverage Dream Giveaway’s established reputation in the charity fundraising arena. The purchase was funded by a combination of AUD 20.9 million (about USD $13.7 million) in cash and AUD 36.9 million (around USD $24.2 million) in debt, leading to a total transaction value of AUD 57.8 million (nearly USD $37.8 million) when additional expenses of AUD 2.5 million (approximately USD $1.6 million) are included.
Dream Giveaway, which reported impressive financials with a AUD 27.1 million (about USD $17.8 million) total transaction value and AUD 21.6 million (roughly USD $14.1 million) in revenue over the past year, will enable Jumbo to rapidly establish its presence in the U.S. market. The company also generated AUD 7.1 million (approximately USD $4.7 million) in adjusted EBITDA, translating to an acquisition multiple of around 7.8x.
Jumbo Interactive’s managing director, Mike Veverka, expressed confidence in the acquisition, stating it allows his team to enter the U.S. market through a well-established operator. He highlighted Jumbo’s 25 years of expertise in digital marketing as a key asset to accelerate Dream Giveaway’s growth trajectory. “We expect our new U.S. business to deliver EBITDA of up to USD $3 million,” Veverka noted.
Dream Giveaway’s CEO, Ryan Maturski, will maintain his leadership role, ensuring continuity in management. Maturski remarked on the positive implications of the acquisition, emphasizing Jumbo’s capabilities to help Dream Giveaway reach “the next level of growth,” highlighting the anticipated impact on job creation and fundraising potential.
This acquisition comes as Jumbo Interactive also expands its footprint in the UK, having recently acquired Dream Car Giveaways, which has distributed over GBP 155 million in prizes to more than 135,000 winners since its inception.
As this development unfolds, industry analysts will be closely monitoring the integration of Dream Giveaway into Jumbo’s operations and its implications for the U.S. lottery landscape. For those invested in lottery advancements and charitable fundraising, this acquisition represents a pivotal moment in the sector.
Stay tuned for further updates as Jumbo Interactive embarks on this exciting new chapter in the U.S. market!
