Betting technology supplier SharpLink and software provider Mer Telemanagement Solutions (MTS) have agreed the terms of a reverse merger that will create a new publicly listed business under the SharpLink brand name.
The deal will see SharpLink’s common stock holders own an estimated 86% of the merged company, which includes a stock option of 10% of the fully-diluted outstanding share capital belonging to the new company.
Founded in 2019, SharpLink provides sports betting technology solutions. It currently has contractual relationships with league operators, including PGA Tour and NASCAR.
MTS, which is publicly traded on the Nasdaq echange, was founded in 1995 and provides telecommunications management and call centre software.
After the merger, MTS’s legacy business will continue to operate as normal, overlooked by members of the MTS management team.
“We are excited to achieve this major milestone by signing the definitive merger agreement with SharpLink, and we believe the transaction, when closed, will provide significant value to both the current MTS shareholders and the SharpLink shareholders who will be receiving MTS shares in the Merger,” said Roy Hess, CEO of MTS.
“Following the merger, our company will be on the leading edge of a potentially massive sports betting market in the US and globally.”
“As sports betting legislation continues to be enacted across the United States, which we are seeing at an accelerated pace as states look to fill budgetary gaps, any company that has an audience of sports fans will have the opportunity to earn additional revenue by opening a channel for that audience to place legal, online bets.” said Rob Phythian, chief executive of SharpLink.
The funding necessary to close the deal has been committed by an investor and approved by both SharpLink’s and MTS’ board of directors. The final agreement is subject to approval from MTS shareholders.