Esports Technologies acquires Aspire Global’s B2C division
Esports Technologies Inc has entered a definitive agreement to acquire the B2C business of Aspire Global for an agreed valuation of $75.9 million.
The US Nasdaq technology group will undertake its biggest M&A to date, agreeing to pay $58.3 cash for Aspire’s B2C portfolio, with the remainder of the transaction paid by a $11.7 million promissory note and $6 million issued in company stock.
Upon completing the transaction, Esports Technologies will take over Karamba, Dansk777, Hopa, Griffon Casino, GenerationVIP, BetTarget as well as assume full ownership of the portfolio’s 1.25 million deposited customers.
The takeover of the B2C brands, Esports Technologies explained, will help “cross-sell esports wagering opportunities to increase its esports revenue, player bet transactions, and customers”.
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.”
In addition, Aspire and Esports Technologies will enter into an agreement where Aspire will provide four years of managed services for the acquired brands, thereby “ensuring operational continuity while allowing Esports Technologies to scale its operations in key markets”.
“Esports Technologies is a strong company with high growth ambitions and is a perfect match for our B2C brands,” Tsachi Maimon, CEO of Aspire Global, said.
“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.”
To fund the acquisition, Esports Technologies has secured agreements with investors for a private placement of $36.2 million, which will consist of convertible preferred stock at an initial conversion of $28.00 per share.