FansUnite completes acquisition of Askott Entertainment

FansUnite Entertainment announced Tuesday that it has completed its acquisition of Askott Entertainment.

The purchase creates one of Canada’s leading online gaming companies, and allows the firm to provide customers with a wider range of betting options such as sports, esports and casino games. New FansUnite CEO Scott Burton told shareholders that the deal represents one of the company’s biggest milestones to date. 

"Our intention as a company has always been to scale and capture market share quickly,” Burton said in a statement. “With that in mind we have brought together a world-class team of executives and board members that have led some of the largest gaming companies in the world. With their help, we will look to execute on our vision of becoming a leader in the global gaming market."

The firm’s former CEO and now president Darius Eghdami noted that the transaction combines a portfolio of B2B and B2C assets that are “unique, industry-leading, and support our goal of growing our global footprint” in the gaming industry.

Under the terms of the deal, Askott shareholders will receive 1.9193 shares of FansUnite for each share held at closing, an implied valuation of C$0.7485 per Askott share. FansUnite will issue nearly 71.2 million shares priced at C$0.39 to Askott shareholders. The deal also entitles former Askott shareholders to purchase shares at different price ranges, with expiry dates.

Following the closing, funds from Askott’s earlier private placement totaling just over C$4.5 million were released from escrow.

Furthermore, Jeremy Hutchings, the former chief technology officer of Askott, has become the CTO of FansUnite; while Ian Winter, the former COO of Askott, has become the COO of FansUnite. Duncan Peter McIntyre has resigned as COO of the company and as a board member.

Askott's B2B Chameleon Gaming platform was recently shortlisted for the 2020 EGR B2B Awards for Esports Betting Supplier of the Year.