Esports Technologies set to acquire Aspire Global’s B2C business for $75.9M | Yogonet International
Multiple-brand acquisition

Esports Technologies set to acquire Aspire Global’s B2C business for $75.9M

Esports Technologies intends to utilize the multiple-brand acquisition to cross-sell esports wagering opportunities to increase its esports revenue, player bet transactions, and customers.
2021-10-01
Malta
Reading time 1:55 min
The company will acquire Aspire’s portfolio of B2C proprietary online casino and sportsbook brands, including Karamba, Hopa, Griffon Casino, BetTarget, Dansk777, and GenerationVIP. The buyer seeks to cross-sell esports wagering opportunities to increase its esports revenue, player bet transactions, and customers. The transaction is expected to close by Nov. 30, 2021.

Esports Technologies announced on Friday the execution of a definitive agreement for the acquisition of Aspire Global's B2C business in a $75.9 million transaction, including $58.3 million in cash, $11.7 million in a promissory note, and approximately $5.9 million worth of common stock. The closing of the acquisition is subject to Esports Technologies' receipt of financing, as well as other closing requirements. The transaction is expected to close by November 30, 2021.

Under the terms of the deal, Esports Technologies will acquire Aspire's portfolio of B2C proprietary online casino and sportsbook brands, including Karamba, Hopa, Griffon Casino, BetTarget, Dansk777, and GenerationVIP. Strategically, Esports Technologies intends to utilize the multiple-brand acquisition to cross-sell esports wagering opportunities to increase its esports revenue, player bet transactions, and customers.

Upon completion of the acquisition, Aspire and Esports Technologies will enter into an agreement where Aspire will provide four years of managed services for the acquired brands, ensuring operational continuity while allowing Esports Technologies to scale its operations in key markets.

In the most recent 12-month period ending June 2021, Aspire Global's B2C revenue was $73.9 million and its EBITDA was $8.2 million. During the same period, the B2C business recorded wagering of $1.8 billion and over 1.3 billion bets.

Aaron Speach, CEO, Esports Technologies, said: "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."

Tsachi Maimon, CEO of Aspire Global, commented: "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."

Esports Technologies has entered into binding agreements with certain investors for a private placement of $36.2 million consisting of convertible preferred stock at an initial conversion of $28.00 per share, subject to future adjustments and warrants to purchase common stock. The conversion of the preferred stock and exercise of the warrants is subject to the receipt of shareholder approval.

A conference call is set for Monday, October 4 at 4:00 PM EDT, reviewing details of the planned acquisition. A replay of the call will be available on Esports Technologies' Investor Relations page.

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