- FansUnite (FANS) has acquired the businesses and brands of American Affiliate LLC
- American Affiliate LLC is a diverse collection of assets dedicated to generating new customers for legal sportsbooks, online casinos, online poker sites
- The transaction will provide FansUnite further access to the U.S. regulated sports betting and online gambling market while generating accretive, high-margin revenue
- FansUnite will acquire all of the issued and outstanding shares of American Affiliate for total consideration of approximately US$58.2 million
- FansUnite Entertainment is a global sports and entertainment company focused on the technology underlying regulated and lawful online gaming
- FansUnite Entertainment Inc. (FANS) opened trading at C$0.53 per share
FansUnite (FANS) has acquired the businesses and brands of American Affiliate LLC.
The transaction will result in FansUnite securing a podium position in the U.S. online betting opportunity and will be the cornerstone of a larger U.S. affiliate strategy going forward.
American Affiliate LLC is a diverse collection of assets dedicated to generating new customers for legal sportsbooks, online casinos, online poker sites, and adjacent products in the U.S. market.
- Accelerates entry into U.S. gaming market: American Affiliates’ Betting Hero brand is the #1 live activation company in the U.S. sports betting and online gambling market.
- Revenue and EBITDA growth: American Affiliate has produced trailing 12 months unaudited revenue and EBITDA of US$13.1 million and US$6.0 million respectively.
- High-Value customer base: American Affiliate’s assets have generated over 150,000 new depositing customers for legal U.S. online betting operators.
- Partnerships with tier-one sportsbooks: Partnerships with leading sportsbooks and casinos including BetMGM, DraftKings, FanDuel, PointsBet, Underdog Fantasy, WynnBet, and more.
- Leading intellectual property portfolio: Category-leading portfolio of proprietary technology.
Scott Burton, CEO of FansUnite Entertainment commented on the game changing acquistion.
“The acquisition of American Affiliate represents the most significant milestone for FansUnite to date. This transformative transaction will provide us further access to the lucrative U.S. regulated sports betting and online gambling market while generating accretive, high-margin revenue, expanding our leadership team, and accelerating the growth of our company’s footprint in the global gambling market.”
“When we looked at how quickly the U.S market is expanding, it made clear strategic sense for us to enter the affiliate business as a way to partner with some of the largest gambling companies in the world,” continued Scott Burton. “We will now own and operate an unparalleled customer acquisition portfolio, allowing us to leverage our technology, brands, and talent to immediately capture share in the U.S. sports betting and online gambling market.”
Combined, the American Affiliate brands represent one of the most significant single sources of new depositing customers for legal U.S. sports betting and online gambling operators. The leadership team has over 40 years of combined experience in the regulated gambling industry, including senior roles at market leaders such as ACEP, Amelco, DraftKings, Catena Media, and GeoComply.
American Affiliate CEO Chris Grove added,
“Legal U.S. sportsbooks and online casinos are spending billions of dollars to acquire and retain customers. Our brands, team, and technology allow us to capture a meaningful share of that marketing spend today while producing some of the highest margins in the U.S. online betting ecosystem.”
“But that success is only a starting point,” Chris continued. “We anticipate unprecedented near-term growth as legal online betting continues to expand into new states and new products. Joining with FansUnite was key to our strategy of aggressively scaling our business to meet that opportunity head-on.”
FansUnite will acquire all of the issued and outstanding shares of American Affiliate for total consideration of approximately US$58.2 million. The purchase price is comprised of US$13.5 million in cash paid on closing, $41.7 million in common shares of FansUnite and deferred cash payments of US$3 million payable in twenty four months.
Principals of American Affiliate may also receive earn-out consideration to be calculated according to EBITDA targets with minimum margin guarantees each fiscal quarter for the three year period following closing.
The common shares issued will be subject to a contractual lock-up ranging from up to 25 per cent released on months 4, 6, 9, 12, 15, 18, 21, 24, and up to 3.0 per cent releasing on month 27, 30, 33, 36 as per the terms of the agreement.
Stifel GMP acted as financial advisor to FansUnite and DLA Piper LLP acted as legal advisor. Stifel GMP will be paid a fee in cash and 866,887 common shares for its services.
FansUnite Entertainment is a global sports and entertainment company focused on the technology underlying regulated and lawful online gaming.
FansUnite Entertainment Inc. (FANS) opened trading at C$0.53 per share.