Jumbo Interactive has completed its strategic entry into the US prize draw market by acquiring Dream Giveaway for A$55.4 million, aiming to leverage its digital expertise to fuel growth in a large, underpenetrated market.
- Acquisition of US-based Dream Giveaway for A$55.4 million
- Dream Giveaway specializes in automotive-themed prize draws with a strong charitable fundraising model
- Transaction funded by cash and an upsized A$120 million debt facility
- Expected low-to-mid single digit EPS accretion in first 12 months
- Dream Giveaway management to remain, supporting operational continuity
Jumbo’s Strategic Leap into the US Market
Jumbo Interactive Limited (ASX, JIN) has taken a significant step in its international growth strategy by acquiring Dream Giveaway (DG USA), a well-established player in the US prize draw sector. The deal, completed on 30 October 2025, marks Jumbo’s first direct presence in one of the world’s largest and most digitally engaged consumer markets.
Dream Giveaway operates a profitable business model centered on high-value automotive-themed giveaways, leveraging a long-standing charitable donation framework. This approach has earned the company a trusted reputation within the non-profit fundraising community, a sector Jumbo is familiar with through its global lottery software and retail operations.
Financials and Funding Structure
The acquisition was valued at an enterprise price of A$55.4 million (US$36 million), representing a multiple of approximately 7.8 times Dream Giveaway’s adjusted EBITDA of US$4.6 million for the trailing 12 months ending July 2025. Jumbo funded the transaction through a combination of A$20.9 million in existing cash reserves and A$36.9 million drawn from an upsized debt facility with ANZ, which now totals A$120 million in committed funding capacity.
This enhanced financial flexibility not only supports the Dream Giveaway acquisition but also underpins Jumbo’s recent purchase of Dream Car Giveaways in the UK, signaling an aggressive push into international prize draw markets.
Growth Prospects and Operational Continuity
Jumbo’s CEO Mike Veverka highlighted the opportunity to accelerate Dream Giveaway’s growth by integrating Jumbo’s proprietary lottery platform and leveraging 25 years of digital marketing expertise. The existing Dream Giveaway management team, led by CEO Ryan Maturski, will remain in place, ensuring continuity and momentum as the business transitions onto Jumbo’s technology stack.
For the fiscal year 2026, Jumbo anticipates Dream Giveaway will contribute underlying EBITDA in the range of US$2.7 million to US$3.0 million, reflecting approximately eight months of operational integration. This excludes an initial strategic investment of up to US$0.6 million aimed at enhancing digital marketing and preparing for the platform transition.
Market Implications and Outlook
The acquisition is expected to deliver low-to-mid single digit earnings per share accretion within the first year, signaling a positive near-term impact on Jumbo’s financial performance. It also diversifies Jumbo’s revenue streams and expands its footprint beyond Australasia, the UK, and Canada into the lucrative US market.
Jumbo’s updated FY26 outlook now incorporates the earnings contribution from both Dream Giveaway and Dream Car Giveaways, with a forthcoming review of dividend payout policy to be addressed at the upcoming Annual General Meeting.
Bottom Line?
Jumbo’s US acquisition sets the stage for accelerated growth but raises questions on integration and debt management ahead.
Questions in the middle?
- How will Jumbo integrate Dream Giveaway’s operations with its existing technology platform without disrupting performance?
- What impact will the increased debt facility have on Jumbo’s financial flexibility and risk profile?
- How will Jumbo’s dividend policy evolve in light of these acquisitions and growth investments?