- Esports Entertainment Group plans to acquire Berthard for $16 million in cash plus 12% of Bethard’s net gaming revenue in the next two years
- Grant Johnson described the deal as “yet another great addition”
- The deal is set to close on July 1 when EEG begins its fiscal year
Esports Entertainment Group makes an acquisition deal with Bethard, looking to buy the latter for around $27 million.
A Deal Paid in Three Portions
Bookmaker Esports Entertainment Group aims to expand by acquiring colleague operator Bethard. The former has set aside $27 million for the deal – $16 million at first and 12% of the net gaming revenue that Bethard makes for the next two years. The deal is planned to be sealed on July 1, when Esports Entertainment’s fiscal year for 2021-2022 begins.
Esports Entertainment Group’s projected revenues went up by $5 million the moment the deal was announced. It is now sitting at around $105 million. Grant Johnson, the CEO of Esports Entertainment Group, expects that his company will greatly benefit from the acquisition, especially considered that Bethard is licensed in two countries: Spain and Sweden. Johnson is excited by the, in his words, “great addition” that will open new doors and markets to his own company.
“With this transaction, we expect to gain two new gaming licenses, including one in the strategically important Swedish market. At the completion of the license handover, we will have six tier-one licenses,“ Johnson added.
The Two Parties’ State of Affairs
Johnson’s company recently revealed its income for the first quarter of 2021. According to that, they have earned $5,4, compared to nil in the same period for 2020. The company is now seeking to recuperate for those losses. Esports Entertainment group struck some important acquisition deals and got its hands on Argyll Entertainment and Lucky Dino Gaming Limited. Esports Entertainment Group is currently waiting for a transaction waiver for the license of its recently-approved New Jersey GMBL subsidiary.
At the moment, Bethard is still in possession of Gameday Group with football star Zlatan Ibrahimović as a brand ambassador and partial owner. This caused some issues, as according to the Fifa Code of Ethics, players are not allowed to show any interest or collaborate with groups that “promote, broker, arrange or conduct betting, gambling, lotteries or similar events or transactions connected with football matches and competitions.”
In the industry, acquisitions and partnerships are everything. Recently Esports Technologies and Colossus Bet entered a strategic partnership, and VSPN bought Famulei.