How Jumbo Interactive’s A$110m Dream Car Deal Unlocks UK Prize Draw Growth
Jumbo Interactive has acquired UK-based Dream Car Giveaways for A$109.9 million, marking its entry into the fast-growing UK prize draw market and establishing a significant B2C presence internationally.
- Acquisition valued at A$109.9 million with upfront cash, equity, and earn-out components
- Dream Car Giveaways operates a profitable, scalable UK prize draw platform targeting younger digital customers
- Jumbo expects double-digit EPS accretion within 12 months post-completion
- Acquisition funded through cash, equity issuance, and upsized debt facility with ANZ
- Integration plan preserves DCG leadership and focuses on regulatory compliance amid evolving UK prize draw codes
Strategic Expansion into UK Prize Draw Market
Jumbo Interactive Limited has taken a significant step in its international growth strategy by acquiring Dream Car Giveaways Limited (DCG), a leading UK-based online prize draw operator. The transaction, valued at an enterprise value of A$109.9 million (£53.9 million), marks Jumbo's first major foray into the rapidly expanding UK prize draw sector, a market estimated to be worth £1.3 billion annually.
Dream Car Giveaways offers participants affordable entry tickets starting at just £0.15 for the chance to win high-value prizes such as luxury cars, cash, and tech gadgets. The platform appeals predominantly to a younger, digitally savvy demographic, with over 99% of participants engaging online. This aligns well with Jumbo's vision to broaden its B2C footprint beyond its established Australian lottery operations.
Financial and Operational Highlights
The acquisition structure includes upfront cash consideration of A$75.2 million, an equity component of A$10.2 million, and an earn-out of up to A$24.5 million payable after December 2026, contingent on performance targets. Based on DCG’s adjusted EBITDA of £8.3 million for the year ended April 2025, the deal implies a multiple of approximately 6.5 times EBITDA. Jumbo anticipates the acquisition will deliver double-digit earnings per share accretion within the first 12 months post-completion.
Funding for the deal combines existing cash reserves, new Jumbo shares issuance, and a significantly upsized debt facility with ANZ Bank, increasing Jumbo’s committed borrowing capacity to A$120 million. This financial flexibility supports Jumbo’s broader growth ambitions, including further targeted acquisitions.
Integration and Growth Prospects
Jumbo plans a phased integration approach that balances operational autonomy for DCG with strategic oversight. The existing DCG management team, including its three founding directors, will remain in place through the earn-out period ending December 2026, reporting to Jumbo’s UK Head of Operations, Tam Watson. This continuity aims to preserve momentum while leveraging Jumbo’s proprietary technology, marketing expertise, and operational capabilities to accelerate growth.
The acquisition also positions Jumbo to capitalize on evolving regulatory frameworks in the UK prize draw market. The recent introduction of a Voluntary Code of Practice by the UK Government, aimed at enhancing consumer protections and transparency, aligns with Jumbo’s commitment to regulatory compliance and responsible gaming.
Outlook and Market Implications
Jumbo has updated its FY26 outlook to reflect the contribution from DCG, expecting continued momentum driven by existing competitions and increased brand investment. The company forecasts underlying EBITDA growth of 20-25% for DCG and anticipates a positive impact on group profitability and cash flow. Meanwhile, Jumbo signals a review of its dividend payout policy at the upcoming AGM, reflecting the capital demands and growth opportunities arising from this acquisition.
Overall, the Dream Car Giveaways acquisition represents a strategic milestone for Jumbo, diversifying its revenue streams and expanding its international footprint in a high-growth digital lottery and prize draw market.
Bottom Line?
Jumbo’s bold UK acquisition sets the stage for accelerated growth but hinges on seamless integration and regulatory navigation.
Questions in the middle?
- How will Jumbo balance DCG’s operational autonomy with its own governance and culture?
- What impact will the UK’s evolving regulatory environment have on DCG’s growth trajectory?
- How will Jumbo’s capital management strategy evolve post-acquisition, especially regarding dividends and debt?
