Esports Technologies has disclosed the execution of a definitive agreement for the acquisition of Aspire Global’s B2C business in a $75.9m transaction.
The agreement, which comes a short time after the two inked a “strategic licence agreement,” includes $58.3m in cash, $11.7m in a promissory note and approximately $5.9m worth of common stock.
Under the terms of the deal, the company will gain Aspire’s portfolio of B2C proprietary online casino and sportsbook brands, including Karamba, Hopa, Griffon Casino, BetTarget, Dansk777, and GenerationVIP.
Esports Technologies says that it will utilise the multiple-brand acquisition to cross-sell esports wagering opportunities to increase revenue, player bet transactions, and customers.
The closing of the acquisition is subject to Esports Technologies’ receipt of financing, as well as other closing requirements, and is expected by November 30, 2021.
Aaron Speach, CEO, Esports Technologies, commented: “The acquisition of Aspire’s B2C business will be a transformative opportunity to accelerate growth by offering esports wagering to 1.25 million new deposited customers. Our company is in a strong position to benefit from the heightened popularity and growing interest in esports.”
Upon completion of the acquisition, the pair will enter into an agreement where Aspire will provide four years of managed services for the acquired brands.
In the most recent 12-month period ending June 2021, Aspire Global’s B2C revenue was $73.9m and its EBITDA was $8.2m. During the same period, the B2C business recorded wagering of $1.8bn and over 1.3bn bets.
Tsachi Maimon, CEO of Aspire Global, explained: “Esports Technologies is a strong company with high growth ambitions and is a perfect match for our B2C brands.
“With Aspire Global’s B2C brands, Esports Technologies gains leading, well-established brands, an excellent base for further growth and a very talented team that contributed to the B2C’s growth.
“We are confident that Esports Technologies will take our B2C brands to the next level, and we welcome Karamba and the other B2C brands as our new partners.”