Canadian igaming operator and technology provider FansUnite Entertainment has completed the acquisition of white label solutions provider Askott Entertainment for CAD$27.8m (USD$20.7m) in FansUnite shares.
Askott shareholders received 1.9193 common shares of FansUnite for each Askot share they hold, for a total of 71.2m shares valued at $0.39 apiece.
As part of the deal, Askot founder and chief executive Scott Burton has been named CEO of the enlarged business.
FansUnite’s former chief executive Darius Eghdami shifts to the role of company president, while former Askott chief technology officer Jeremy Hutchings and former Askott chief operating officer Ian Winter now hold these roles at FansUnite. Winter replaces Duncan Peter McIntyre, who has resigned.
McIntyre, Saxon Tudor Shadforth and Shafin Diamond Tejani resigned from FansUnite’s board of directors. Replacing them are Burton and former Askot directors James Keane and Chris Grove.
“We are pleased to announce the closing of this transaction as it represents one of our biggest milestones to date and allows us to turn our attention to the future,” Burton said. “Our intention as a company has always been to scale and capture market share quickly. With that in mind we have brought together a world class team of executives and board members that have led some of the largest gaming companies in the world.
“With their help, we will look to execute on our vision of becoming a leader in the global gaming market.”
Through the acquisition, Askott’s esports-focused Chameleon white label gaming platform becomes part of FansUnite’s portfolio. Askott’s website says it “is licensed and regulated by the Malta Gaming Authority”, but does not list a licence number or date of authorisation. No licence for Askott is listed in the Malta licensee register.
In addition, FansUnite will also gain access to Askott’s in-house game studio, which is set to create a series of RNG games that will be integrated into the Chameleon platform or available separately to operators. The studio has already developed two titles, Loothunter and Crash Heist.
FansUnite, meanwhile, offers sportsbook solutions on a smart contract-based platform, while it also operates a white label gaming site licensed in Britain, the Scotland-facing McBookie, on Star Racing’s platform.
McBookie was purchased by FansUnite in March 2020 and delivered 131% revenue growth in Q2 of 2020, despite the impact of the novel coronavirus (Covid-19) on sports betting, thanks to casino revenue of $3.9m.
“With the Askott acquisition now complete, FansUnite is well positioned to become a leader in the global igaming market,” Eghdami said. “The combined forces of both companies will bring together a portfolio of B2B and B2C assets that are unique, industry leading, and support our goal of growing our global footprint in the fast growing gaming industry.”
Haywood Securities acted as exclusive financial advisor to Askott for the deal, while Gowling WLG LLP was its legal advisor. Fasken Martineau DuMoulin acted as legal counsel to FansUnite.