Jumbo’s UK Expansion Raises Questions on Integration and Growth Risks
Jumbo Interactive has completed a strategic acquisition of UK-based Dream Car Giveaways, marking its entry into the rapidly growing UK prize draw market. The deal, valued at nearly A$110 million, positions Jumbo to leverage its digital lottery expertise internationally.
- Acquisition of Dream Car Giveaways for A$109.9 million
- Entry into UK B2C prize draw market with established digital platform
- Deal funded by cash, equity issuance, and upsized debt facility
- Dream Car Giveaways reported A$36.5 million revenue and A$16.9 million EBITDA for FY25
- Acquisition expected to deliver double-digit EPS accretion within 12 months
Jumbo’s Strategic UK Expansion
Jumbo Interactive Limited (ASX, JIN) has taken a significant step in its international growth strategy by acquiring Dream Car Giveaways (DCG), a leading UK digital prize draw operator. The acquisition, completed on 14 October 2025, marks Jumbo’s entry into the UK’s burgeoning prize draw market; a sector driven by younger, digitally native consumers seeking engaging and affordable ways to win high-value prizes.
Dream Car Giveaways operates a trusted and profitable digital platform where customers can enter competitions to win luxury cars, cash, and lifestyle products. With ticket prices starting as low as £0.15, DCG appeals to a broad audience, combining entertainment with the allure of big prizes. This aligns well with Jumbo’s expertise in digital lotteries and customer engagement developed over two decades in Australia.
Financials and Deal Structure
The acquisition was valued at an enterprise figure of A$109.9 million (approximately £53.9 million), funded through a mix of A$75.2 million in upfront cash, A$10.2 million in equity issuance, and an earnout of up to A$24.5 million contingent on future performance. Jumbo also secured an upsized debt facility of A$120 million with ANZ to support the transaction and future growth initiatives.
DCG’s financial performance for the 12 months ended April 2025 was robust, with total transaction value of A$118.2 million, revenue of A$36.5 million, and adjusted EBITDA of A$16.9 million. The acquisition multiple stands at approximately 6.5 times adjusted EBITDA, reflecting a reasonable valuation for a high-growth digital business.
Growth Prospects and Integration
Jumbo expects the acquisition to be immediately accretive to earnings per share, projecting double-digit EPS growth within the first year post-completion. The current DCG management team, including its three founding directors, will remain in place through the earnout period ending December 2026, ensuring continuity and leveraging their market expertise.
Jumbo plans to integrate its world-class software, marketing, and customer management capabilities to accelerate DCG’s growth trajectory. The acquisition also diversifies Jumbo’s revenue streams and strengthens its international footprint, positioning the company to capitalize on the evolving digital prize draw landscape in the UK.
Looking Ahead
Following the acquisition, Jumbo will review its dividend payout policy to reflect the enlarged group structure and growth ambitions. Investors will be watching closely for updates at the upcoming Annual General Meeting in November 2025, where Jumbo is expected to provide further clarity on its financial outlook and capital management strategy.
Overall, this acquisition signals Jumbo’s commitment to expanding beyond its Australian base and tapping into new markets with strong growth potential. The UK prize draw sector’s appeal to younger, digital-first consumers offers a promising avenue for sustained expansion.
Bottom Line?
Jumbo’s UK acquisition sets the stage for international growth but hinges on seamless integration and market traction.
Questions in the middle?
- How will Jumbo balance integration risks while maintaining DCG’s growth momentum?
- What impact will the acquisition have on Jumbo’s dividend policy and capital structure?
- Can Jumbo replicate its Australian success in the competitive UK prize draw market?
