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Aspire Global sells its B2C segment to Esports Technologies

1 October 2021

(PRESS RELEASE) -- Aspire Global has signed an agreement to sell its B2C segment to the U.S.-based group Esports Technologies, Inc. The divestment is following Aspire Global’s review of the B2C segment that was announced in March this year. The consideration sums up to about €65 million. The transaction also includes a four-year platform and managed services agreement with an estimated gross value of €70 million.

The consideration consists of €50 million in cash, €10 million in a promissory note and €5 million in common stock in the listed entity of Esports Technologies. The platform and managed services agreement consists of royalties related to the use of Aspire Global’s platform and related services during the coming four years. The estimated value of the royalties is based on the present performance and might change in the coming years. The total value of the transaction is estimated to be €135 million.

Aspire Global’s B2C segment consists of several B2C-brands, including the successful Karamba brand. In Q2 2021, the B2C segment reported rolling twelve months net gaming revenues of €61.8 million and €6.9 million in EBITDA. The B2C segment has shown significant growth across all main B2C brands in the twelve month period, driven by among all continuous optimizations in all marketing channels. The review of the B2C segment was initiated in March 2021 to assist Aspire Global in assessing its options to improve overall margins and EBITDA as well as further accelerating new B2B initiatives and enter fresh markets.

Strategically, the agreement means that Aspire Global will be a purely B2B company with a continued strong focus on profitable growth. Aspire Global will concentrate its investments on the continued development of its technology and offering with the goal of becoming a world leading iGaming supplier. In the near-term, Aspire Global has as its primary goal to strengthen its positions in the US and Brazil.

Esports Technologies is a leading global operator and provider of esports products and marketing solutions. Gogawi.com is its licensed online gambling operator, that offers real money betting on esports events and professional sports from around the world. The company is also developing predictive esports gaming technologies for distribution to both customers and business partners. Esports Technologies was founded in Nevada in September 2020, and listed on Nasdaq in the US in April 2021.

This agreement follows the strategic license deal with Esports Technologies which Aspire Global announced on 20 September, 2021. The license deal included Aspire Global’s entire proprietary offering – platform, sportsbook, games, game aggregator and managed services. As a part of the deal, Esports Technologies will launch its esports/sportsbook Gogawi.com in certain key markets on Aspire Global’s platform and intends to launch an additional brand on the platform in the future. In addition, Aspire Global will make the Esports Technologies proprietary esports feed available to Aspire Global’s partners.

Tsachi Maimon, CEO of Aspire Global, said: “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.”

Aaron Speach, CEO of Esports Technologies, said: “We have high growth ambitions and aim to be one of the biggest esports operators in the world. Aspire Global’s B2C-brands are excellent complements to our strong-growing Esports Technologies brand and will be key in the continued execution of our growth strategy.”

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Aspire Global sells its B2C segment to Esports Technologies is republished from Online.CasinoCity.com.