Although the group did not disclose the entity that had agreed to acquire Bethard, it did state the purchase price comprised €1.65m in cash on closing and an additional €6.5m attributed to its release from payment of contingent consideration liability from the Bethard purchase.
The purchaser will also assume liabilities of approximately €1.2m, while terms of sale allow for a cash holdback of €150,000, which may be retained by the purchaser should liabilities exceed agreed amounts in the purchase agreement.
The sale of the Bethard business is expected to close during the two-week period following the signing of the purchase agreement (14 February) subject to certain closing conditions.
Licensed in Malta and Sweden, Bethard was only acquired by Esports Entertainment in July of 2021, with the group having purchased Gameday Group’s B2C business, operating as the Bethard brand.
Then-Esports Entertainment chief executive Grant Johnson said at the time that the deal would “substantially” increase its revenue and available markets.
The planned sale of the Bethard business follows the group’s announcement in December that it was closing its Argyll business in the UK.
With the sale of Bethard, and the closing of the Argyll business, the group said that it plans to focus on its Lucky Dino igaming brands that operate on its proprietary Idefix platform.
“I am very pleased at the work that is being undertaken to reduce debt and focus on our core igaming and esports assets,” Esports Entertainment chief executive Alex Igelman said.
“We remain committed to building a world-class esports gambling operation that is global in reach and that provides esports content and strategic services to those involved in esports gambling, as well as those seeking to enter the market.
“I am extremely encouraged and pleased with the speed and efficiency in which senior management effectuated these important actions.”