NorthStar Gaming Advances Expansion Plans with Slapshot Acquisition
LISTEN TO THIS ARTICLE:NorthStar Gaming Holdings Inc., a Canadian iGaming operator, has announced that it is to acquire Slapshot Media Inc., an iGaming marketing and managed services company, also based in Canada.
NorthStar will be acquiring 100% of Slapshot’s issued and outstanding shares as it seeks to expand its presence beyond Ontario. It hopes to grow its market reach through its relationship with Spreads.ca, an iGaming brand operated by the Abenaki Council of Wolinak.
Acquiring Slapshot will complement NorthStar’s existing iGaming offerings. The company noted that Spreads.ca will not be made available in Ontario and that NorthStar Bets will be the only iGaming brand operated by NorthStar in the province.
Earlier this year, NorthStar announced a partnership with Playtech that covers all of Canada and is designed to deliver a new cost-effective model in all Canadian markets. The partnership will allow NorthStar to capitalize on any newly regulated markets that emerge in other provinces.
The agreement will see NorthStar acquire 100% of Slapshot’s shares for C$1.8 million, which will be payable in 3,272,727 common shares of NorthStar at a value of $0.55 per share. Furthermore, Slapshot vendors will be eligible for an earn-out of up to C$500,000 depending upon the company’s revenue in the 12-month period following the closure of the acquisition. The money will be paid quarterly in NorthStar common shares at a value per share of the larger of a) a 20-day volume-weighted average price calculated each quarter or b) $0.45 per share.
The acquisition of Slapshot expands our ability to enter new markets faster as we look to introduce NorthStar Bets to consumers across the country. We are hyper-focused on growing the reach of NorthStar, and this strategic acquisition and partnership further positions NorthStar for rapid growth into new markets within Canada.
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