nteractive gaming and sports betting technology company Elys Game Technology announced on Monday that it has completed the acquisition of Bookmakers Company US LLC, a Nevada limited liability company doing business as USBookmaking (USB).
On July 15, Elys closed the transaction to acquire 100% of the membership interest in USB, which will become a wholly-owned subsidiary of Elys, as it continues to operate as a wholly-owned business unit maintaining its brand, employees, management, and bookmaking team.
The consideration paid for all of the equity of USB was $12 million paid 50% in cash and 50% in 1,265,823 shares of the company’s common stock based on the 90-day weighted average closing price prior to the closing. The definitive purchase agreement also provides for potential earnouts of up to $41.8 million through December 31, 2025.
The acquisition of USB provides Elys with an operational footprint in 4 states, New Mexico, Colorado, Michigan, and North Dakota, with 2 additional states, Washington, D.C., and Iowa, in progress and provide a significant boost to client base and revenue when fully integrated. The company intends on expanding in the US and Canadian sports betting markets.
President of USB Vic Salerno, said: “USB realized that to increase our client base we needed a sportsbook platform that was built for the United States market. We spent the last three years vetting virtually every sport betting technology in existence and determined that the Elys platform was superior to all the other platforms. The combination of USB’s highly experienced bookmaking team and a technologically advanced and cutting-edge software platform, we expect, will be a formidable parlay in the sports wagering market and we are eager to present these strengths to our pipeline of potential clients.”
Executive Chairman and Interim CEO of Elys Michele Ciavarella, commented: “We are very proud to welcome USB and all their talented team that shares the same passion and dedication for our business that our core family of operations in Europe has fostered during the past two decades. We are highly optimistic that the addition of USB to our European expertise could accelerate our growth and product innovation while solidifying a position at the forefront of our industry servicing large and small casino operators, as well as neighborhood establishments like restaurants and bars across the United States and Canada as regulations permit.”
Ciavarella continued: “We continue to make measurable progress in our previously stated goals to diversify our business into global operations and remain disciplined and focused as we execute on our plans each year. The combination with USB, which we expect to be transformational, gives Elys Game Technology fully integrated solutions with localized bookmaking expertise in two key regulated sports betting markets, underpinned by one of the newest and most advanced microservices betting technology in the industry."
“We have been building Elys from the bottom up to make sure that we have all the tools, skills, and capacity in place to handle the potential growth that Elys could generate in the U.S. Elys’ Multigioco subsidiary was recently ranked in the top 11 in sports betting in Italy, one of the largest sports betting markets in Europe. Through public statements, Morgan Stanley estimates that by 2025, 50% of the U.S. will have access to legal sports betting, this potentially makes the U.S. one of the largest regulated sports betting markets in the world, where along with the i-gaming market, is estimated to reach $7 billion by 2025 and $30 billion to $35 billion at total maturity. We plan to leverage the synergies of our rapidly growing team and expected future business partnerships to drive long-term growth and shareholder value,” he concluded.