Strategic Acquisition Expected to Unlock and Fuel Conversions and Customer Lifetime Value of SharpLink’s 2.5 Million and Growing Base of Fantasy and Sports Game Players
MINNEAPOLIS, Jan. 05, 2022 (GLOBE NEWSWIRE) — SharpLink Gaming Ltd. (Nasdaq:SBET) (“SharpLink” or the “Company”), a pioneer of game-changing technological solutions and experienced-based services for the U.S. online sports betting industry, today announced that it has acquired certain assets of FourCubed Management, LLC and 6t4 Company (collectively, “FourCubed”), including FourCubed’s iGaming and affiliate marketing network focused on delivering quality traffic and player acquisitions, retention and conversions to iGaming operator partners worldwide.
SharpLink has acquired certain assets of FourCubed for total consideration of $8.15 million, which consists of $6.5 million in cash and the issuance of approximately 600,000 restricted ordinary shares of SharpLink. The transaction also provides for an earn-out payment of up to approximately 600,000 additional restricted ordinary shares based on the acquired business achieving specific agreed-upon performance benchmarks.
Rob Phythian, Co-Founder and CEO of SharpLink, stated, “The FourCubed strategic acquisition adds an industry respected operating team with decades of combined experience in conversion through affiliate marketing services and in securing highly profitable, recurring, net gaming revenue contracts with many of the world’s leading iGaming operators. Moreover, FourCubed has differentiated itself by forming sticky relationships with its customers through its high tech, high touch strategy and proven player conversion methodologies. SharpLink has more than 2.5 million players engaging with our fantasy and sports games platforms through our network sites and our sports league and media partnership sites. We believe that FourCubed’s technology platform, its team’s affiliate marketing expertise, as well as its approach to player conversions, can be readily adapted to SharpLink’s platform, unleashing extraordinary value from our growing audience of sports fans as adoption of our C4 sports betting conversion technology continues to accelerate.”
Established in 2005, FourCubed owns and operates an international iGaming affiliate network comprised of over 12,000 sub-affiliates and has delivered over 1.8 million referred players since the network’s launch in 2008. For the past three years, FourCubed has averaged annual revenues of more than $5.5 million, with over 90% of its revenue stemming from recurring net gaming revenue contracts with many of the world’s elite iGaming operators, including Party Poker, bwin, UNIBET, GG Poker, Bet365, 888 poker, betfair and others.
Continuing, Phythian noted, “We also believe that FourCubed has reached a key inflection point in its own proprietary business evolution and is ideally poised for dynamic growth of its online poker and casino gaming operations through expansion in the fast emerging iGaming and sports betting markets in the U.S. Consequently, we believe that this acquisition provides SharpLink with the added firepower to help shape …….