Acquisition could provide a significant
boost to client base and revenue when fully integrated
Elys Game Technology, Corp. (“Elys” or the “Company”)
(Nasdaq:ELYS)(NEO:ELYS), an interactive gaming and sports betting
technology company, is pleased to announce that it has completed
the acquisition of Bookmakers Company US LLC, a Nevada limited
liability company doing business as USBookmaking (“USB”).
USB will become an integral part of Elys’ U.S. facing brand and
will continue to operate as a wholly owned business unit
maintaining its well-established brand, employees, management, and
bookmaking team. The acquisition of USB provides Elys with an
operational footprint in 4 states (New Mexico, Colorado, Michigan
and North Dakota) with 2 additional states (Washington, D.C. and
Iowa) in progress and provide a significant boost to client base
and revenue when fully integrated. The transaction represents a
fundamental strategic partnership that completes an important
pillar of the Company’s business plan to build out in the U.S. and
Canadian sports betting markets.
“USB realized that to increase our client base we needed a
sportsbook platform that was built for the United States market,”
stated Vic Salerno, President of USB. “We spent the last three
years vetting virtually every sports betting technology in
existence and determined that the Elys platform was superior to all
the other platforms. The combination of USB’s highly experienced
bookmaking team and a technologically advanced and cutting-edge
software platform, we expect, will be a formidable parlay in the
sports wagering market and we are eager to present these strengths
to our pipeline of potential clients.”
“We are very proud to welcome USB and all their talented team
that share the same passion and dedication for our business that
our core family of operations in Europe has fostered during the
past two decades,” stated Michele Ciavarella, Executive Chairman
and Interim CEO of Elys. “We are highly optimistic that the
addition of USB to our European expertise could accelerate our
growth and product innovation, while solidifying a position at the
forefront of our industry servicing large and small casino
operators, as well as neighborhood establishments like restaurants
and bars across the United States and Canada as regulations
permit.”
Mr. Ciavarella continued, “We continue to make measurable
progress in our previously stated goals to diversify our business
into global operations and remain disciplined and focused as we
execute on our plans each year. The combination with USB, which we
expect to be transformational, gives Elys Game Technology fully
integrated solutions with localized bookmaking expertise in two key
regulated sports betting markets, underpinned by one of the newest
and most advanced microservices betting technology in the
industry.
We have been building Elys from the bottom up to make sure that
we have all the tools, skills and capacity in place to handle the
potential growth that Elys could generate in the U.S. Elys’
Multigioco subsidiary was recently ranked in the top 11 in sports
betting in Italy, one of the largest sports betting markets in
Europe. Through public statements, Morgan Stanley estimates that by
2025, 50% of the U.S. will have access to legal sports betting,
this potentially makes the U.S. one of the largest regulated sports
betting markets in the world, where along with the i-gaming market,
is estimated to reach $7 billion by 2025 and $30 billion to $35
billion at total maturity. We plan to leverage the synergies of our
rapidly growing team and expected future business partnerships to
drive long-term growth and shareholder value.”
Transaction Closing:
On July 15, 2021, Elys closed the transaction to acquire 100% of
the membership interests in USB and USB became a wholly owned
subsidiary of Elys. The consideration paid for all of the equity of
USB was $12 million paid 50% in cash and 50% in 1,265,823 shares of
the Company’s common stock based on the 90-day weighted average
closing price prior to the closing. The definitive purchase
agreement also provides for potential earnouts of up to $41.8
million through December 31, 2025.
About Elys Game Technology, Corp.
Elys Game Technology, Corp., is a B2B global gaming technology
company operating in multiple countries worldwide, with B2C online
and land-based gaming operations in Italy. In Italy, Elys offers
its clients a full suite of leisure gaming products and services,
such as sports betting, e-sports, virtual sports, online casino,
poker, bingo, interactive games and slots.
The Company’s innovative wagering solution services online
operators, casinos, retail betting establishments and franchise
distribution networks. Additional information is available on our
corporate website at www.elysgame.com.
Investors may also find us on Twitter @ELYS_gaming.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These statements are
identified by the use of the words “could,” “believe,”
“anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,”
“predict,” “potential,” “project” and similar expressions that are
intended to identify forward-looking statements and include
statements regarding the USB acquisition providing significant
boost to client base and revenue when fully integrated, the
combination of USB’s highly experienced bookmaking team and a
technologically advanced and cutting-edge software platform being
formidable parlay in the sports wagering market, the addition of
USB to the Company’s European expertise accelerating the Company’s
growth and product innovation while solidifying its industry
position in servicing large and small casino operators, as well as
neighborhood establishments, the combination with USB being
transformational, leveraging the synergies of the Company’s rapidly
growing team and expected future business partnerships to drive
long-term growth and shareholder value, and estimates that by 2025,
50% of the U.S. will have access to legal sports betting,
potentially making the U.S. one of the largest regulated sports
betting markets in the world, where along with the i-gaming market,
is estimated to reach $7 billion by 2025 and $30 billion to $35
billion at total maturity. These forward-looking statements are
based on management’s expectations and assumptions as of the date
of this press release and are subject to a number of risks and
uncertainties, many of which are difficult to predict that could
cause actual results to differ materially from current expectations
and assumptions from those set forth or implied by any
forward-looking statements. Important factors that could cause
actual results to differ materially from current expectations
include, among others, the Company’s ability to boost its client
base and revenue when the USB acquisition is fully integrated, the
Company’s ability to leverage the combination of USB’s highly
experienced bookmaking team and its software platform in the sports
wagering market, the Company’s ability to accelerate its growth and
product innovation while solidifying its industry position in
servicing large and small casino operators, as well as neighborhood
establishments, the Company’s ability to leverage the synergies of
the Group and expected future business partnerships to drive
long-term growth and shareholder value, the estimate that by 2025,
50% of the U.S. will have access to legal sports betting, the U.S.
becoming one of the largest regulated sports betting markets in the
world, and along with i-gaming reaching $7 billion by 2025 and $30
billion to $35 billion at total maturity, the duration and scope of
the COVID-19 outbreak worldwide, including the impact to state and
local economies, and the risk factors described in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2020 and
its subsequent filings with the U.S. Securities and Exchange
Commission, including subsequent periodic reports on Form 10-Q and
current reports on Form 8-K. The information in this release is
provided only as of the date of this release, and the Company
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated events,
except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210719005316/en/
Elys Game Technology, Corp. Michele Ciavarella, Executive
Chairman Tel: 1-628-258-5148 Email: m.ciavarella@elysgame.com
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