Jumbo Interactive Ltd (ASX: JIN) shares are having a strong session on Wednesday.
In morning trade, the ASX 300 share is up 9% to $10.71.
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Why is this ASX 300 share jumping?
Investors have been buying the online lottery ticket seller's shares today after it announced a major acquisition.
According to the release, the company has entered into an agreement to acquire Dream Car Giveaways and has now completed the acquisition following satisfaction of all conditions. It notes that completion occurred on 14 October 2025.
Dream Car Giveaways is a leading business-to-consumer (B2C) brand and digital market proposition in the UK prize draw market. It allows customers to participate to win prizes, such as cars, cash, property, and lifestyle products.
Jumbo notes that it is an established and trusted digital prize draw competition platform which is operating at scale and profitably, with significant future growth potential.
Management believes the acquisition is strongly aligned with its strategy to accelerate growth, enhance revenue and earnings diversification, and expand its presence in international markets.
It also highlights that Dream Car Giveaways has a "compelling digital proposition" and is operating in a significant and high-growth market segment driven by younger, digitally native customers that are seeking seamless, engaging and entertaining experiences.
What is the cost?
The ASX 300 share has agreed to acquire Dream Car Giveaways for an enterprise value of A$109.9 million (GBP53.9 million).
This comprises upfront cash of A$75.2 million (GBP36.9 million), an equity component of A$10.2 million (GBP5 million), and an earnout payment of up to A$24.5 million (GBP12.0 million). The latter is payable post 31 December 2026 and is subject to achieving certain revenue growth and earnings hurdles.
Based on Dream Car Giveaways' adjusted EBITDA of GBP8.3 million for the 12 months ended 30 April 2025, the enterprise value represents an acquisition multiple of approximately 6.5x adjusted EBITDA.
Looking ahead, for the eight and half months that remain in FY 2026, the new acquisition is expected to contribute GBP7 million to GBP7.3 million to Jumbo's underlying EBITDA. On an annualised basis, this is equivalent to 20% to 25% growth in underlying EBITDA on the prior corresponding period.
Commenting on the deal, Jumbo's managing director, CEO, and founder, Mike Veverka, said:
DCG has become a trusted leader in the UK's B2C prize draw sector, which is meeting the rising demand from younger, internet-savvy consumers seeking unique products in an engaging digital format. Jumbo's two decades of B2C success in Australia and its world-class software, marketing, and customer management expertise, provides DCG with the foundation to continue its already impressive growth.
