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- Esports Technologies Inc’s (NASDAQ: EBET) stock price fell more than 6% during intraday trading today. That’s why it happened.
The stock price of Esports Technologies Inc (NASDAQ: EBET) – one of the world’s leading providers of advanced sports betting products and technologies – fell more than 6% during today’s intraday trading. Investors react negatively to Esports Technologies which today announces the signing of a definitive agreement to acquire the B2C business of Aspire Global (STO: ASPIRE) in a transaction of 75.9 million euros. dollars, including $ 58.3 million in cash, $ 11.7 million in promissory note and approximately $ 5.9 million. value of ordinary shares. And closing of the acquisition is subject to receipt of funding from Esports Technologies, along with other closing requirements. The transaction is expected to close by November 30, 2021.
Under the terms of the agreement, Esports Technologies will purchase Aspire’s portfolio of B2C online casino and sportsbook brands, including Karamba, Hopa, Griffon Casino, BetTarget, Dansk777 and GenerationVIP. Esports Technologies plans to use the acquisition of multiple brands to sell esports betting opportunities to increase its esports revenue, player betting transactions and customers.
In the last one-year 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 stakes of $ 1.8 billion and over 1.3 billion bets.
Upon completion of the acquisition, Aspire and Esports Technologies will enter into an agreement whereby Aspire will provide 4 years of managed services for the acquired brands, ensuring operational continuity while allowing Esports Technologies to expand operations in key markets.
Esports Technologies had entered into binding agreements with certain investors for a private placement of $ 36.2 million consisting of convertible preferred shares at an initial conversion of $ 28 per share, subject to future adjustments and warrants. ordinary actions. And the conversion of preferred shares and the exercise of warrants are subject to shareholder approval.
KEY QUOTES:
“The acquisition of Aspire’s B2C business will be a transformational opportunity to accelerate growth by offering esports betting to 1.25 million new clients deposited. Our company is well positioned to take advantage of the growing popularity and growing interest in esports.
– Aaron Speach, CEO, Esports Technologies
“Esports Technologies is a strong company with strong ambitions for growth and fits perfectly with our B2C brands. With Aspire Global’s B2C brands, Esports Technologies gains leading and established brands, an excellent foundation for future growth and a very talented team that has contributed to the growth of B2C. We are confident that Esports Technologies will take our B2C brands to the next level, and we welcome Karamba and other B2C brands as our new partners.
– Tsachi Maimon, CEO of Aspire Global
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
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