Esports Entertainment Group has agreed to sell its Bethard online casino and sportsbook company for €9.5 million (£8.4 million/$10.2 million).
Although the group did not reveal the entity that had agreed to acquire Bethard, it did state that the purchase price included €1.65 million in cash at closing and an additional €6.5 million attributed to the group's release from payment of contingent consideration liability from the Bethard purchase.
The purchaser will also assume liabilities of approximately €1.2m, while terms of sale allow for a cash holdback of €150,000, which may be retained by the purchaser should liabilities exceed agreed amounts in the purchase agreement.
The sale of the Bethard business is scheduled to occur within two weeks of the purchase agreement's signature (14 February), subject to certain closing conditions.
Bethard, which is licenced in Malta and Sweden, was only acquired by Esports Entertainment in July 2021, when the group purchased Gameday Group's B2C business, which operates under the Bethard brand.
Then-Esports Entertainment chief executive Grant Johnson said at the time that the deal would “substantially” increase its revenue and available markets.
The potential sale of the Bethard business comes after the group announced in December that it would close its Argyll division in the United Kingdom.
The group stated that with the sale of Bethard and the closure of the Argyll business, it intends to focus on its Lucky Dino igaming brands that run on its proprietary Idefix platform.
“I am very pleased at the work that is being undertaken to reduce debt and focus on our core igaming and esports assets,” Esports Entertainment chief executive Alex Igelman said.
“We remain committed to building a world-class esports gambling operation that is global in reach and that provides esports content and strategic services to those involved in esports gambling, as well as those seeking to enter the market.
“I am extremely encouraged and pleased with the speed and efficiency in which senior management effectuated these important actions.”
By fLEXI tEAM