UPDATE: Australian iLottery leader Jumbo Interactive has officially entered the U.S. market by acquiring prize draw company Dream Giveaway for AUD 55.4 million ($36.3 million). The acquisition was finalized on October 30, 2023, marking a significant milestone in Jumbo’s expansion strategy amid rising demand for lottery products in America.
This acquisition allows Jumbo Interactive to leverage Dream Giveaway’s established presence in the charity fundraising sector, positioning itself for rapid growth. Dream Giveaway has proven to be a profitable operator, generating 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. With a robust AUD 7.1 million ($4.7 million) in adjusted EBITDA, Jumbo’s acquisition multiple stands at approximately 7.8x.
Jumbo’s entry into the U.S. market is strategically designed to capitalize on Dream Giveaway’s established brand and operational success. The deal was financed through AUD 20.9 million ($13.7 million) in cash and AUD 36.9 million ($24.2 million) in debt, bringing the total investment to AUD 57.8 million ($37.8 million) when including additional expenses of AUD 2.5 million ($1.6 million).
Mike Veverka, Jumbo Interactive’s managing director, emphasized the significance of this acquisition, stating, “This transaction will allow us to enter the USA via a well-established and profitable operator with a strong track record.” He also expressed expectations for the U.S. business to deliver up to $3 million in EBITDA, highlighting the potential for accelerated growth through Jumbo’s proven software platform and extensive digital marketing expertise.
Dream Giveaway’s CEO, Ryan Maturski, will maintain his leadership role, ensuring continuity in management during this exciting transition. Maturski expressed optimism, stating, “This acquisition recognizes Dream Giveaway’s spectacular growth and positions us for the next level of expansion.”
In addition to this U.S. venture, Jumbo Interactive has recently broadened its international footprint by acquiring Dream Car Giveaways in the UK, a prize draw provider that has awarded over GBP 155 million in prizes to more than 135,000 winners since its inception. This dual expansion reflects Jumbo’s aggressive strategy to dominate the digital lottery landscape on a global scale.
As the company embarks on this new chapter, all eyes will be on how Jumbo Interactive leverages its expertise and resources to capture the growing U.S. lottery market. With Dream Giveaway’s established framework, Jumbo is poised to make significant strides in the coming months. Stay tuned for further updates as this story develops.
