Vancouver-based sports betting tech company FansUnite Entertainment has entered into a definitive agreement to acquire another Vancouver-based company, esports software provider Askott Entertainment. The deal would result in a merger between Askott Entertainment and a new subsidiary of FansUnite.
“This merger with Askott will… transform us into one of Canada’s leading gaming companies.”
Under the terms of the agreement, which the companies entered into on June 22, FansUnite, which is listed on the Canadian Securities Exchange, will acquire all of the outstanding securities of Askott. A newly incorporated subsidiary of FansUnite will then amalgamate with Askott and continue as one corporation, which will be a wholly-owned subsidiary of FansUnite.
As part of the acquisition deal, FansUnite will issue company shares to Askott’s shareholders. The deal is subject to approval by Askott’s shareholders and regulatory review and is expected to close in the third quarter of 2020.
“This merger with Askott will represent our most significant milestone to date and transform us into one of Canada’s leading gaming companies,” said Darius Eghdami, CEO of FansUnite Entertainment. “With the addition of Askott, we will have a fully integrated gaming asset that offers multiple B2C platforms for users, B2B technology for all forms of sportsbooks, and a seasoned team of executives that have led and grown multiple organizations on a global scale.”
FansUnite Entertainment uses blockchain technology in the sports betting industry. The company’s Sportsbook platform takes sports bets and wagers through smart contracts. The company was founded in 2017 by Eghdami and COO Duncan McIntyre.
Askott Entertainment has developed an iGaming platform with an esports focus. iGaming refers to activities such as sports betting, online casino betting, poker betting, or online video gaming. Askott’s software that is targeted toward online bettors and casino players. The company was founded in 2013.
FansUnite said the new combined company will offer four B2C platforms with a collective 300,000 registered members and over $350 million CAD wagered to date. The new company will also have two completed casino games and four signed B2B contracts, although the details of those contracts and games were not disclosed.
“The FansUnite merger with Askott accelerates the company’s vision of becoming a global leader in the gaming space,” said Shafin Diamond Tejani, CEO of Victory Square Technologies, an investor in FansUnite. “Askott’s robust eSports betting technology platform and in-house built [random number generator] Casino games complements FansUnite’s sports betting, casino, and virtual offerings.”
Image source Unsplash. Photo by Mike Benna.