Raketech Agrees €8.2m Settlement on €20.3m Casumba Earnout; Shares Surge 62%

Raketech Group Holding agreed on 19 October 2026 to settle the remaining earnout for Casumba Media Ltd for €8.2 million, replacing an outstanding claim of about €20.3 million including accrued interest. The Stockholm‑listed affiliate will pay €2.7 million in cash and rely on €5.5 million of financing from Bank of Valletta at 6.65%, with the loan secured on receivables from Raketech's 2025 sale of the Casumba assets.

Transaction terms and immediate market reaction

Raketech published the agreement as inside information at 15:30 CEST on Monday 19 October 2026. The company will discharge the sellers of Casumba Media Ltd in full and final settlement for €8.2 million, against a prior liability of about €20.3 million, removing the earnout obligation if the financing completes.

The payment mechanics are: the first €3.0 million is due from cash within two business days of signing; Bank of Valletta will pay €5.2 million directly to the sellers on drawdown; and €0.3 million of the loan reimburses cash, producing a net cash outflow of €2.7 million. Raketech said the loan is approved but it is still "awaiting the completion of the bank's loan disbursement process." If the loan is not released by 31 December 2026 the old quarterly payments resume; if not released by 31 March 2027, or if the financing is cancelled, each seller may return to the previous terms.

The bank financing combines a new €3.5 million three‑year term facility with €2.0 million drawn from Raketech's existing revolving facility, both at 6.65% and repayable over three years. The facility is secured by a pledge over the deferred consideration from the sale of the Casumba assets, carries a debt service coverage covenant of at least 1.1x, and requires bank approval for any future share buybacks.

Market reaction was immediate: Raketech's shares opened at SEK 1.25 on 19 October, touched SEK 2.60 intraday and closed at SEK 1.97, up 62.14%, on a volume of 603,885 shares versus 6,158 the previous trading day, according to MFN and Yahoo Finance data.

How a €2.0 million acquisition became a €20.3 million liability

Raketech bought Casumba Media, a Maltese company operating affiliate sites primarily focused on Japan, in August 2019 for €2.0 million upfront. The original agreement included a mixed earnout: part capped at €2.1 million to the end of 2021 and the remainder uncapped, based on performance up to 31 July 2024, with some payments potentially in shares.

In May 2025 the sellers agreed to extend the final €20.6 million payment due in September 2026 out to March 2028, on a cash‑only basis with quarterly instalments tied to Raketech's free cash flow and interest initially at 5% plus EURIBOR, rising to 6% plus EURIBOR from September 2026. Raketech carried the liability at €21.3 million on 30 June 2026 in its second‑quarter report, against total equity of €32.1 million and cash of €5.2 million.

On 24 September 2025 Raketech sold the Casumba assets for a fixed €12.0 million, payable monthly through December 2029 at 8% interest with no upfront payment, and recorded a loss of about €10 million. Raketech cited regulatory developments in the assets' markets but did not name the buyer. Yogonet reported that Japan's revised gambling addiction law, banning online gambling advertising, took effect on 25 September 2025.

The company's release does not disclose the identity or number of sellers, nor the split of the €8.2 million between them. Board member Magnus Alebo, founder of Casumba Media, is a beneficial owner of one seller and did not participate in the board decision; he holds 1,086,934 Raketech shares, per the company's website.

Balance sheet mechanics and lender protections

The Bank of Valletta loan effectively replaces a large contingent liability with a smaller, secured borrowing. Raketech expects a significant non‑cash gain in the fourth quarter below operating profit and around €0.4 million of bank interest in the first year, compared with about €0.9 million of notional earnout interest recognised in the first half of 2026 alone.

Raketech said roughly €12 million still due from the sales of the Casumba and US assets would cover the bank borrowings if paid in full. The Casumba receivable had produced €0.9 million by August and was carried at €6.8 million against about €11 million outstanding, reflecting credit risk and the long payment schedule. The bank's covenant and veto on buybacks constrain capital allocation; this follows an extraordinary general meeting on 26 June 2026 that authorised buybacks of up to 25% of shares, partly to settle deferred payments from past deals.

Raketech said its only borrowings will be about €8.5 million from the bank if the facility draws as planned. The company characterises the outcome as swapping a large, flexible liability for a smaller, stricter one.

Operational backdrop and upcoming reporting

Second‑quarter revenue from continued operations fell 17.6% to €5.6 million, while adjusted EBITDA remained at €1.3 million, Raketech reported. Free cash flow before earnouts was €1.0 million in the second quarter; the earnout instalments were a share of that.

Competitors and peers have published weaker guidance or operational impacts this year: Catena Media cut its 2026 target after a 29% drop in third‑quarter revenue; Better Collective reduced 2026 guidance after Brazil's betting ban; Gentoo Media trimmed guidance. Raketech's growth was driven by the Nordics, led by Sweden and Denmark, and Denmark has reintroduced a bill that would end affiliate revenue share.

Raketech will publish its third‑quarter report on 5 November 2026, which will show the company's ability to service the smaller debt and the performance of its core operations. The settlement is not final until Bank of Valletta completes loan disbursement.