Raketech Settles Casumba Earnout for €8.2 Million, Securing Bank Financing

Raketech Group has reached an agreement to settle its outstanding earnout obligation related to the 2019 acquisition of Casumba Media Ltd. The Malta-based iGaming affiliate will pay €8.2 million to resolve a liability that stood at approximately €20.3 million, including accrued interest. The deal cuts the amount due by roughly €12.1 million, or nearly 60%, and eliminates all remaining earnout obligations once completed.

The settlement was announced October 19. Raketech will fund it with €5.5 million in new financing from Bank of Valletta and €2.7 million from existing cash reserves. The transaction is conditional on release of the approved bank funds.

Settlement Mechanics and Bank Terms

Under the agreement, Raketech pays €3 million from cash within two business days of signing, with Bank of Valletta transferring €5.2 million directly to the sellers. The financing comprises a €3.5 million term loan and €2 million drawn from an existing revolving credit facility. Both facilities carry annual interest of 6.65% and must be repaid over three years.

An extra €300,000 of the approved financing reimburses cash already spent, confirming the net cash contribution at €2.7 million. The loan requires a minimum debt service coverage ratio of 1.1 times. Future share buybacks need bank approval. If financing is not released by December 31, 2026, prior quarterly earnout payments resume and credit against the settlement. Should funds remain unavailable by March 31, 2027, individual sellers may exit and revert to original terms.

Raketech acquired Casumba Media in August 2019. It extended the payment schedule in May 2025. The liability was €21.3 million on June 30, 2026; the company has since paid €1.3 million. Separately, it sold the Casumba assets in September 2025 for €12 million on deferred terms. Approximately €11 million in principal remains outstanding, with the receivables pledged as security for the new Bank of Valletta facility.

Balance Sheet Impact and Forward Path

Raketech expects to record a substantial non-recurring, non-cash gain in the fourth quarter of 2026, reflecting the difference between the prior carrying amount and the settlement. The gain appears below operating profit and does not affect EBITDA. Net interest-bearing debt is projected to decline by approximately €12 million, with equity rising by the gain amount. Finance costs will decrease. The company recorded €900,000 in notional interest on the earnout during the first half of 2026; that expense ends with settlement. Interest on the new borrowings is expected at approximately €400,000 in the first year.

CEO Johan Svensson stated: “This marks a significant milestone for Raketech, as we have reached an agreement to settle the Casumba earnout, substantially strengthening our balance sheet. The favourable financing terms also provide us with a solid financial foundation, allowing us to fully focus on executing our product strategy across Affiliation Marketing and SubAffiliation through AffiliationCloud.”

Total bank borrowings are forecast at approximately €8.5 million after closing. Raketech retains receivables from the Casumba sale and prior US asset disposals totaling roughly €12 million in outstanding payments. It releases third-quarter results on November 5. As reported by World Casino News, the transaction leaves Raketech with a cleaner balance sheet and no further contingent earnout exposure tied to the 2019 deal.

Reporting: World Casino News

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