Just a month after Esports Technologies entered into a license agreement to integrate its feed into Aspire Global’s esports platform, the two companies have agreed a deal that will see Esports Technologies purchase Aspire’s B2C Portfolio.
The deal is purportedly worth $75.9 million and will see Esports Technologies INC. pay $58.3 million in cash, $11.7m in a promissory note and around $5.9 million worth of common stock.
In addition, the transaction also includes a four-year platform and managed services agreement, which will see royalties related to Aspire Global’s platforms and similar services paid for the next four years.
Those royalties are estimated to be worth around an additional $81.4 million.
It is expected that the transaction, subject to Esports Technologies receipt of financing and other closing documents, should be completed by the 30th November 2021.
Acquisition Of Sportsbook And Online Casino Brands
As part of the deal, Esports Technologies will acquire the extensive portfolio of Aspire’s B2C online casino and sports betting services.
This includes some familiar names in the market including Karamba, Griffon Casino, BetTarget, Dansk777, GenerationVIP and Hopa.
It is believed that Esports Technologies move will allow the company to use the existing brands availability in different locations around the world, to give customers access to its proprietary esports betting service.
Expansion Of Esports Technologies Proprietary Esports Betting Tech
In turn, this will not only expand the opportunity for these customers to enjoy esports betting but will also allow the customers a chance to try the new Artificial Intelligence odds system that Esports Technologies have pioneered in recent times.
The new AI Odds system, which we first reported on back in August, could well be a gamebreaker in the esports industry.
The algorithm used is one of the most sophisticated and innovative in terms of calculating esports odds for a variety of markets and it is thought that this system will be a key part of the esports betting roll out across the newly acquired sites.
Given that during the 12-month period to June 2021, Aspire Global’s B2C revenue recorded over 1.3 billion bets worth over $1.8 billion in cash terms, this is a healthy business that Esports Technologies will be taking over.
As a result of the takeover, Aspire Global will now focus solely on its B2B services with a focus on expanding in the developing regions of the United States and Brazil one of its primary goals.
1.25 Million New Deposited Customers
Speaking about the agreement, the CEO of Esports Technologies, Aaron Speech 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.”
Similarly, the CEO of Aspire Global, Tsachi Maimon remarked:
“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 B2C’s growth. We are confident that Esports Technologies will take our B2C brands to the next level, and we welcome Karamba and B2C brands as our new partners.”