Esports Technologies, a global provider of esports wagering products and technology, has entered into a definitive agreement with Aspire Global to acquire the latter’s B2C business for $75.9 million.
Acquisition Pending Receipt of Financing
Esports Technologies has agreed to pay $58.3 million in cash, $11.7 million in a promissory note and around $5.9 million in common stock for the deal that is expected to close by November 30, 2021. subject to the buyer’s receipt of financing and other closing requirements.
The B2C portfolio that will be acquired by Esports Technologies under the terms of the agreement include Aspire Global’s B2C proprietary online casino and sports betting brands Karamba, Hopa, Griffon Casino, BetTarget, Dansk777, and GenerationVIP. 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,” asserts Aaron Speach, CEO, Esports Technologies.
Aspire Global’s B2C business registered in the 12 months ended June 30, 2021, revenue of $73.9 million and EBITDA of $8.2 million, generated from $1.8 billion in total wagering and over 1.3 billion bets.
Esports Technologies is planning to take advantage of cross-selling opportunities for esports wagering across the acquired portfolio of brands to boost its revenue, number of player bets and customer base. On transaction close, Esports Technologies will ensure the operational continuity of the brands by signing a 4-year managed services deal for the brands with Aspire Global.
Perfect Match for the B2C Brands
Commenting on the agreement, Aspire Global CEO Tsachi Maimon outlined the high growth ambitions and internal strength as a company make Esports Technologies the “perfect match” for the B2C brands. Tsachi Maimon, CEO, Aspire Global, added, “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.”
The announcement for the acquisition comes less than ten days after Esports Technologies and Aspire Global had forged new partnership to allow them to benefit from their partner’s technology solutions. Aspire Global will integrate to its platform Esports Technologies’ proprietary odds modeling, market creation, and trading feed, while the esports wagering specialist will take advantage of Aspire Global’s customer relations management system AspireEngage and the offerings under the BtoBet and Kamambe brands.