FansUnite Agrees to Sell Subsidiary McBookie for $4M

The global entertainment and sports company focused on delivering technology for online gambling operators, FansUnite, announced it has entered into a definitive agreement for the sale of its wholly-owned subsidiary, McBookie. Details about the new transaction emerged earlier this week and see FansUnite sell the business “to an arm’s length third-party” in a deal with a price tag surpassing $4 million.

FansUnite confirmed that Tekkorp Capital Advisors act as a strategic advisor for the company in light of the acquisition deal. “Purchase price is US$4,016,544 which converts to more than $5M based on the most recent exchange rates available,” explains a statement released by the company Tuesday.

FansUnite’s CEO, Scott Burton, explained that the sale of the Scottish-focused online casino and sportsbook represents a good development for the company. He outlined that last year, the company started a process related to streamlining of its business. According to Burton, with the expanding regulations in the UK, FansUnite understood that it was time for it to leave the B2C vertical.

“This is a great deal and outcome for McBookie and for FansUnite. We began a path of streamlining and focusing our business in 2022. With the UK continuing to tighten regulations on gaming operations, we felt it was time for FansUnite to exit the B2C space.“

Scott Burton, CEO of FansUnite

The CEO said that by selling McBookie, the company will benefit from focusing resources on other business segments that are expected to deliver strategic growth. Burton identified the potential of the US market and its affiliate opportunities while explaining that the offload of the online casino and sportsbook will “strengthen FansUnite’s balance sheet as the company moves towards being cash flow positive.” Last but not least, he thanked Paul Petrie and Damian Walker, McBookie’s directors, for their efforts and strategic guidance that helped the brand grow exponentially.

McBookie Reports Significant Growth

It was back in March 2020 when FansUnite took over McBookie in a deal for CA$2.2 million ($1.6 million). Now, three years after the deal, the brand has seen exponential growth hitting 7x its EBITDA. Without any doubt, the positive growth of the brand reaffirms the efforts of Walker and Petrie.

Under the guidance of the duo, McBookie reported an increase in turnover of 305%. Additionally, the sportsbook and online casino reported a gross win increase of 451%, while at the same time enjoying steady growth of newly registered players and demonstrating efforts to retain existing customers.