Esports Entertainment Group has entered into a share purchase agreement to sell its Bethard online casino and sports betting business for €9.5m (£8.4m/$10.2m).
Although the group did not name the entity that agreed to acquire Bethard, it did say that the purchase price included €1.65 million in cash at closing and an additional €6.5 million as it was relieved of paying contingent consideration liabilities for the Bethard acquisition.
The buyer will also assume approximately €1.2 million in debt, while the terms of sale allow for the retention of €150,000 in cash, which the buyer may retain if the debt exceeds the amount agreed in the purchase agreement.
The sale of the Bethard business is expected to close within two weeks (14 February) of the signing of the purchase agreement, subject to certain closing conditions.
Bethard is licensed in Malta and Sweden until July 2021 when it was acquired by Esports Entertainment, the group that owns Acquired the B2C business of Gameday GroupOperating as the Bethard brand.
Esports Entertainment CEO Grant Johnson said at the time that the deal would “significantly” increase its revenue and available market.
The planned sale of the Bethard business follows the group’s announcement in December that it would close its business. Argyll’s UK operations.
With the sale of Bethard and the closure of the Argyll business, the group said it plans to focus on its Lucky Dino igaming brand, which operates on its proprietary Idefix platform.
“I’m very pleased with the work we’re doing to reduce our debt and focus on our core igaming and esports assets,” said Alex Igelman, CEO of Esports Entertainment.
“We remain committed to building a world-class esports betting business with a global reach and delivering esports content and strategy to those involved in betting on esports, as well as those seeking to enter the market.
“I am very encouraged and pleased with the speed and efficiency with which senior management has implemented these important actions.”