FansUnite Entertainment has completed the sale of its Betting Hero business to Hero Group for an aggregate purchase price of $37.5 million, adjusted on a cash-free, debt-free basis, following an initial agreement in June.
FansUnite noted that the purchaser is controlled 60% indirectly by Betting Hero's co-founders Jai Maw and Jeremy Jakary, and 40% by geolocation specialist GeoComply.
Scott Burton, FansUnite's Chief Executive Officer, Director and Chairman of the Board of Directors, commented: "The completion of this sale represents the culmination of a tremendous amount of effort from the entire FansUnite team, and I am proud of what we have accomplished. I extend my sincere thanks to our shareholders for their support throughout this journey.
"I also want to acknowledge the exceptional efforts of our Board, advisors, and legal teams, whose dedication was vital in bringing this transaction to a close. We wish the Betting Hero and GeoComply teams continued success and look forward to exploring new opportunities that will create value for our shareholders."
Following the closing of the transaction, FansUnite expects the Toronto Stock Exchange (TSX) to delist the company’s common shares on Wednesday, August 21. “The company will apply to withdraw the quotation of its common shares from the OTCQB as soon as possible after the delisting. The transaction and the delisting remain subject to final acceptance by the TSX,” FansUnite said in a press release.
FansUnite is expected to distribute an aggregate amount of CAD$26 million ($19 million) to its shareholders as a return of capital, equivalent to $0.0725 per share. The company said it will retain a net cash of $500,000 to explore new business opportunities for the economic benefit of shareholders.
“GeoComply shares Jai and Jeremy's vision to deliver the very best player experience for our industry,” said GeoComply CEO Anna Sainsbury. “While digital analytics alone can offer great insights, they lack the in-person experience for operators to see, hear, and learn from real customer interactions.
“Betting Hero bridges that gap by delivering exceptional real-world UX insights. We experienced that firsthand ourselves as customers of their Research division, and now we’re excited to support Betting Hero in using that expertise to drive even greater growth.”
