Elys Game Acquires Bookmakers For $12M Plus Potential Future Earnout

Elys Game Technology Corp ELYS has acquired Bookmakers Company US LLC, a Nevada basded U.S. Bookmaking company, for $12 million in both cash and stock.
In addition, members of U.S. Bookmaking may receive up to an additional $38 million, plus a potential premium of 10% or $3.8 million, based upon achievement of certain EBITDA milestones during the next 4 years.
U.S. Bookmaking provides sports wagering services such as design and consulting, turn-key sports wagering solutions, and risk management.
The transaction is expected to be completed by July 15, 2021, after which Bookmakers will become a wholly-owned subsidiary of Elys.
“We believe that our Elys Gameboard technology will give USB the tools they need to rapidly expand their current U.S. footprint and potentially develop operations in the evolving Canadian sports betting market," said Executive Chairman Michele Ciavarella.
Elys Game Technology had over $21.5 million of cash and cash equivalents as of March 31, 2021.
Price action: ELYS shares are trading lower by 0.81% at $3.98 on the last check Wednesday.