Australian listed company Jumbo Interactive announced the acquisition of the American lottery company Dream Giveaway for AUD 57.8 million (approximately USD 37.6 million), officially entering the US market. This is Jumbo's second international acquisition following the early October purchase of UK-based Dream Car Giveaways, marking an acceleration in its global expansion strategy. Dream Giveaway specializes in high-value car-themed giveaways and charitable donation models, with a revenue of AUD 21.6 million and an adjusted EBITDA of AUD 7.1 million as of July 2024. Jumbo expects the acquisition to contribute to low to mid-single digit earnings per share growth within 12 months and retains the original management team to ensure operational continuity.
Acquisition Details and Strategic Significance
Jumbo Interactive acquired Dream Giveaway USA for AUD 57.8 million in cash plus debt financing, marking the company's first establishment of a B2C business in the US. Dream Giveaway primarily operates car-themed lotteries using a long-term charitable donation model. Jumbo CEO Mike Veverka stated that the acquisition allows for rapid entry into the US market through a mature and profitable platform, and will accelerate development by integrating Jumbo's software platform and 25 years of digital marketing experience. Dream Giveaway CEO Ryan Maturski noted that the company is already a leading brand in the US lottery market, and Jumbo's digital expertise will drive the next phase of growth.
Financial Impact and Performance Expectations
In the 12 months up to July 2024, Dream Giveaway achieved a revenue of AUD 21.6 million, an adjusted EBITDA of AUD 7.1 million, and a total transaction volume of AUD 27.1 million. Jumbo expects the acquisition to contribute to low to mid-single digit earnings per share growth in the 12 months following completion, and has updated its FY2026 outlook, expecting a base EBITDA of USD 2.7 million to USD 3 million for the US operations (covering 8 months of performance). Additionally, Jumbo will invest an initial strategic investment of USD 400,000 to USD 600,000 for digital marketing and platform migration preparations.
Global Expansion Strategy Layout
This acquisition is Jumbo's second international transaction in recent times. In early October, the company acquired UK digital lottery platform Dream Car Giveaways for AUD 109.9 million, entering the UK market. Jumbo emphasizes that these two transactions are key steps in its internationalization strategy, allowing for rapid entry into new markets through the acquisition of mature brands. The company plans to retain the management teams of both acquired companies and has devised retention plans to ensure a smooth business transition, with future plans to integrate technology platforms and digital marketing resources to leverage synergies.
