Esports Technologies has announced the signing of a formal deal for the $75.9 million acquisition of Aspire Global’s B2C business.
The deal, which comes after the two signed a “strategic licence agreement,” comprises $58.3 million in cash, $11.7 million in a promissory note, and $5.9 million in common stock.
Aspire’s portfolio of B2C proprietary online casino and sportsbook brands, including Karamba, Hopa, Griffon Casino, BetTarget, Dansk777, and GenerationVIP, will be acquired as part of the acquisition.
According to Esports Technologies, the multiple-brand acquisition will be used to cross-sell esports wagering alternatives in order to grow revenue, player bet transactions, and customers.
The deal is scheduled to close by November 30, 2021, pending Esports Technologies’ receipt of finance and other closing criteria.
Esports Technologies CEO Aaron Speach 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.”
Following the acquisition, the two companies will engage into an agreement under which Aspire will supply managed services for the acquired brands for four years.
Aspire Global’s B2C sales was $73.9 million and its EBITDA was $8.2 million in the most recent 12-month period ended June 2021. During the same time period, the B2C business saw $1.8 billion in wagering and over 1.3 billion bets.
Aspire Global’s CEO, Tsachi Maimon, 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.”