FansUnite agrees deal to sell McBookie5th May 2023 9:07 am GMT
FansUnite Entertainment has signed a definitive agreement to sell its McBookie online betting business.
FansUnite acquired McBookie in March 2020 for $2.2 million and will recognise a significant profit after agreeing to sell the UK-licensed B2C and B2B business for $5 million, equivalent to seven times McBookie’s 2022 EBITDA.
“This is a great deal and outcome for McBookie and for FansUnite,” said FansUnite CEO Scott Burton. “We began a path of streamlining and focusing our business in 2022. With the UK continuing to tighten regulations on gaming operations, we felt it was time for FansUnite to exit the B2C space."
The company will now focus resources on business segments that offer the highest growth potential, specifically the US marketplace and affiliate opportunities.
“This sale will strengthen FansUnite’s balance sheet as the company moves towards being cash flow positive,” Burton added. “I want to thank Paul and Damian for their efforts while they were part of FansUnite and wish them well as they continue to grow the McBookie brand.”
As part of the deal, Paul Petrie and Damian Walker will continue to serve as directors at McBookie.
Tekkorp Capital Advisors acted as strategic advisor to FansUnite.
Shares in FanUnite Entertainment Inc. (TSE:FANS) closed unchanged at CAD$0.065 per share after setting a new 52-week low of $0.06 per share during trading on Thursday.