Esports Technologies Inc has entered into a definitive agreement to acquire Aspire Global’s B2C business for an agreed valuation of $75.9 million.
The technology group will make its largest merger and acquisition to date, agreeing to pay $58.3 million in cash for Aspire’s B2C portfolio, with the remainder of the transaction paid for by a promissory note of $11.7 million and US $6 million issued in company stock.
Upon completion of the transaction, Esports Technologies will take control of Karamba, Dansk777, Hopa, Griffon Casino, GenerationVIP, BetTarget, as well as a total of 1.25 million customers.
The acquisition of the B2C division, Esports Technologies explained, will help “cross-selling eSports betting opportunities to increase its eSports revenue, betting transactions for players and customers”.
Aaron Speach, CEO of Esports Technologies, commented: “The acquisition of Aspire’s B2C business will be a transformative opportunity to accelerate growth, offering eSports betting to 1.25 million new customers.
Speach continued: “Our company is in a strong position to benefit from the growing popularity and growing interest in electronic sports.”
Esports Technologies will have four years of services for acquired brands
In addition, Aspire and Esports Technologies have entered into an agreement whereby Aspire will provide four years of managed services for the acquired brands, “thus ensuring operational continuity and allowing Esports Technologies to expand its operations in key markets”.
“Esports Technologies is a strong company with great growth ambitions and is a perfect fit for our B2C brands. With Aspire Global’s B2C business, the group gains leading and well-established brands, an excellent foundation for further growth and a very talented team to contribute to its expansion,” said Tsachi Maimon, CEO of Aspire Global.
Maimon added: “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 finance the acquisition, the company signed contracts with investors for a private injection of $36.2 million, which will consist of preferred shares at an initial conversion of $28 per share.