In a deal announced just last month, Aspire Global, a publicly listed company on Nasdaq First North Premier Growth Market in Sweden, has signed a deal to acquire all BtoBet shares. Last year, the leading aggregator and games studio, Pariplay, was also acquired by Aspire Global for €13.1m. Adding to this acquisition, Aspire has moved to complete its expansion as an iGaming provider, finally adding a sportsbook to the array of features it has to offer.
Collectively, BtoBet has built a reputation on 20 years of experience in technology and software development and is considered an innovator in the sports betting industry. Not only is the acquisition of BtoBet by Aspire a strategic move, but it is also an incredibly privileged one considering the high standing BtoBet holds in iGaming circles. This deal comes just in time as sports betting and online gaming flourishes, despite pandemic concerns.
Closing the Deal
BtoBet has invested heavily in growing its reach and has done so relatively quickly, gaining quite a bit of momentum in Africa and Latin America. The acquisition by Aspire Global is not just an extension of this growth, but a testament to the rapid success BtoBet has had in recent years.
Talking Numbers
The deal itself is an extended exchange, involving a purchase price of €20 million in cash–€15 million of which is due at closing and €5 million of which will be received twelve months afterward–and a consideration based on BtoBet’s performance after closing. The consideration is seven times BtoBet’s earnings before tax and interest from two years after the closing date, not including the €20 million from the purchase.
The prediction is that the closing will happen during Q4 2020, pushing any material positive effect for Aspire Global into 2021.
Mutual Gain
For Aspire Global, multiple millions is a small price to pay for access to the sports betting market, getting their best foot in the door with one of the greatest names in the industry. This rounds out their business, moving from online casinos and slots to a full iGaming experience. On the acquisition, Tsachi Maimon, CEO of Aspire Global, said: “Aspire Global now enters the sports betting arena with storm strength. With the acquisition of BtoBet, we have become a true global B2B company which owns and provides an iGaming platform, sports betting, casino games, and games aggregator as well as managed services for all continents and markets. Aspire Global can now compete for any deal, big or small, that exists out there.”
Aside from the hefty price tag for 100% of shares, BtoBet stands to gain substantially. Having access to a wider variety of content and investment capabilities increases portfolio value for partners. The push for expansion on the map can also be sped up, giving immediate access to global markets.
Making the Reach
BtoBet has been able to gain hold in Africa and Latin America, emergent markets where Aspire has yet to make any moves. Including Europe, BtoBet has 32 operators on its platform worldwide. Meanwhile, Aspire Global has a strong presence in more established regions like Europe and now the US. This immense reach combined with BtoBet’s advanced player-oriented betting software makes for a worldwide operational powerhouse.
A Familiar Future
BtoBet will become part of Aspire Global, but will largely retain the same organization and operations that it has currently. The relationship it has with its operators and users will not change and BtoBet has emphasized maintaining the brand’s identity. Still, it will ultimately be part of the larger iGaming platform that is Aspire Global.
A Perfect Marriage
Both Alessandro Fried, founder and shareholder of BtoBet, and Tsachi Maimon have voiced excitement about the coupling of the two brands. “This is a perfect match. We are impressed by the qualities of the Neuron Sports platform and in addition we will get access to new growth markets, new potential big deals and new opportunities,” Maimon expressed.
Alessandro Fried said of the joining, “I am truly enthusiastic by the opportunities we see by becoming part of Aspire Global, the powerhouse for iGaming operators. With our joined forces we will take this new global iGaming offering in every corner of the earth. We have been in the industry for a long period of time and finally, we met the perfect partner that matches our vision and with which we can build a stronger presence globally.”
