Better Collective A / S, which is listed in Stockholm, has moved to further diversify its publishing network by announcing its €35 million acquisition of the esports player community HLTV.org.
Better Corporate Governance, which is updating customers, notes that the acquisition would create the organisation as one of the leading digital publishers in the emerging global esports scene.
HLTV.org has been operating in Denmark since 2002 and is known as the leading online counter-strike authority (CS:GO) offering daily news, tournament statistics, match analysis, fan forums and more detailed information to its fans and athletes.
A summary of the terms of the deal sees Better Collective agreeing to a € 27 million cash and equity mix as an upfront payment that secures the acquisition of HLTV.org and its associated properties.
Further terms of the deal see Better Collective agreeing to another’ EUR 8 million earn-out clause’ relating to the success of the asset over a three year period.
Confirming the acquisition, Better Collective CEO Jesper Søgaard said: “We have carefully analysed and monitored esport for a long time. It is a rapidly growing industry and we consider esports an ideal extension to our sports-focused business. The nature of esports betting differs significantly from traditional sports betting and, therefore, it was essential to find the right partner, adding deep know-how and industry knowledge to Better Collective.
“I am confident that, through this acquisition, we have found the right people who operate some of the best-positioned esport brands in the world. We expect strong synergistic effects as many of the betting operators we collaborate with today also offer bets on esports, so I look forward to a prosperous esports future for Better Collective together with our new colleagues.”
Better Collective states in its acquisition announcement that it has acquired a digital asset that produces more than 27million unique organic visits each month and that it is further acquiring leading Danish CS: GO group Dust2.dk as part of the transaction to establish the base for its new esports project.
Dust2.dk offers sports industry news and interviews, live scores on CS: GO matches, and also hosts the official Top 10 CS: GO team list from Denmark. On average there are over 250,000 visits to the website every month.
Completing the purchase, Better Collective states that it will maintain founders and management of HLTV.org to ensure that its new sports channels, networks and communities are created.
Commenting on the deal, HLTV.org CEO Martin Rosenbæk said: “Joining the Better Collective group will support our ambition to remain the preferred CS:GO brand for esports enthusiasts across the world. Esports is an industry that is rapidly growing and evolving and, through constructive discussions with the Better Collective management, it became clear that they are the optimal partner for us to realise the full potential of our platforms.
“With more than 15 years of experience within sports betting, the Better Collective group has a deep understanding of sports communities and how to utilise technology to enhance the player experience. Combining this with the experience we have gathered from developing within the CS:GO community, we are strongly positioned to grow and build even stronger brands and experiences that will benefit the global network of CS:GO fans and our business.”