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FansUnite Entertainment has agreed to sell its Betting Hero business to GeoComply Solutions and Betting Hero’s co-founders for $37.5m.

The transaction, expected to close by 15 August, anticipates net proceeds of $20m.

FansUnite plans to distribute 90% of the proceeds to its shareholders, amounting to an estimated C$0.065 to C$0.075 per share.

This represents a substantial premium of between 44% and 67% over the closing price of the company’s shares on the Toronto Stock Exchange on 26 June, and between 71% and 97% over the 30-day volume weighted average price.

Upon completion, Betting Hero’s co-founders, Jai Maw and Jeremy Jakary, will control the majority stake, while GeoComply will hold a 40% share.

The transaction remains subject to shareholder approval, regulatory clearances, and customary closing conditions.

However, FansUnite’s board unanimously supports the sale, citing attractive valuation and debt reduction benefits.

CEO commentary

FansUnite CEO Scott Burton said: “After a long and thorough strategic evaluation of our business, we’ve received a substantial cash offer for our primary remaining asset.

“It not only reflects high market multiples when compared to similar transactions but also a substantial premium to our current share price.

“After extensive deliberation with our board and advisers, we believe it’s in the best interest to recommend the sale and allow the shareholders to vote on a return of capital.”

Last year, FansUnite sold its Chameleon source code to the microbetting start-up Betr and shifted away from B2B platform licensing.

GeoComply’s investment aims to support Betting Hero’s growth in North America’s regulated gaming markets.

“Jai and Jeremy have built a tremendous business with a laser-like vision to support their customers’ mission for the best possible user experience through the sign-up process,” said GeoComply’ co-founder and CEO Anna Sainsbury.

“At GeoComply we share that vision and are delighted, through this intended investment, to help Betting Hero further their efforts and deploy more resources and focus into serving our customers and their patrons throughout North America,” she added.

Betting Hero, operational for six years across 20 regulated gaming states, specialises in activating new users for online sportsbooks and iGaming operators.

Its activation business has converted over 500,000 new users to online sportsbook and iGaming operators.

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