FansUnite, a global entertainment and sports firm that specializes in delivering technology to online gambling operators, has announced that it has signed a definitive agreement regarding the sale of McBookie, its wholly owned subsidiary. FansUnite announced the details of the deal earlier this week. The company will sell its business to a “third-party at arm’s-length” for a price exceeding $4 million.
FansUnite confirmed Tekkorp Capital Advisors will act as a strategic adviser for the company, in light of this acquisition deal. The company released a press release on Tuesday explaining that the purchase price was US$4,016,544. This is more than $5M at the current exchange rate.
Scott Burton, FansUnite CEO, said that the sale to the online sportsbook and casino based in Scotland is a positive development for the business. He explained that the company began a streamlining process last year. Burton said that with the increasing regulations in the UK FansUnite realized it was time to move away from the B2C sector.
“This is an excellent deal for McBookie as well as for FansUnite. In 2022, we began the process of streamlining our business and focusing it. We felt that it was time to leave the B2C market for FansUnite as the UK continues to tighten its regulations.
Scott Burton, CEO FansUnite
The CEO stated that the company would benefit by selling McBookie and focusing its resources on other segments expected to bring strategic growth. Burton identified the US Market as well as its affiliate opportunities. He also explained that the offloading of the online sportsbook and casino will “strengthen FansUnite’s balance sheet” and help the company move towards cash flow positivity.
McBookie Reports Significant Increase in Sales
FansUnite acquired McBookie for CA$2.2million ($1.6million) in March 2020. Three years after the acquisition, the brand is experiencing exponential growth, with 7x EBITDA. The positive growth of the Brand is a testament to the work of Walker and Petrie.
McBookie has reported a 305% increase in its turnover under the leadership of the two. The sportsbook and online casinos also reported an increase in gross wins of 451%.