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Esports Entertainment Group Close in On Bethard Acquisition

According to reports, Swedish gaming organization Bethard is close to being purchased by the Esports Entertainment Group for around... David | 30. May 2021

According to reports, Swedish gaming organization Bethard is close to being purchased by the Esports Entertainment Group for around $27 million. The operator is believed to be paying almost $20 million initially, along with a 12% earn-out, which will be based on Bethard’s net revenue over the next 24 months.

Bethard’s gaming revenue totaled $31 million last year, which would take the acquisition to around the $27 million mark. As long as nothing changes, the deal will be announced on July 1, when the Esports Entertainment fiscal year starts. Based on the upcoming deal, Esports Entertainment Group’s estimated revenue has risen from $100m to $105m.

Why Bethard Was So Appealing to the Esports Entertainment Group

Bethard is licensed and regulated in Sweden and Spain, with Grant Johnson, Esports Entertainment Group Chief Executive, believing that this would play a huge part in their growth. Johnson stated that:

“This is another great addition for Esports Entertainment Group that substantially increases our revenues, and available markets. With this transaction, we expect to gain two new gaming licenses, including one in the strategically important Swedish market. At the completion of the license handover we will have six tier one licenses.”

Gameday Group plc are the current owners of Bethard, with Swedish soccer legend Zlatan Ibrahimovic having recently become part-owner. However, there are question marks surrounding his involvement, with this being in breach of FIFA’s Code of Ethics. UEFA is believed to have started an investigation into the matter.

Why the Esports Entertainment Group Continue to Invest

Should the deal go through, it would become the latest acquisition for the Esports Entertainment Group, who purchased Lucky Dino Gaming Limited for $30 million in March. This deal came after the purchase of Argyll Entertainment last year.

Esports Entertainment Group also recently announced that its New Jersey GMBL subsidiary had been granted a license. New Jersey will be the first state in which the company launches, when it receives a transactional waiver.

The group’s financials were revealed recently too. For the three months ending March 31, a revenue of $5.4 million was recorded. They made a net loss of $12.4 million over the same period of time.