NorthStar Gaming looks to Canadian growth with C$2.3m Slapshot Media acquisition
Ontario-licensed operator agrees shares plus earn-out deal for marketing and managed services company
NorthStar Gaming has agreed a C$2.3m all-share deal to acquire Canadian igaming marketing and managed services company Slapshot Media.
Under the terms of the deal, NorthStar will acquire 100% of the business’ issued and outstanding shares for C$1.8m with the acquisition cost payable in the form of 3,272,727 common shares in NorthStar at a deemed value of C$0.55 per share.
Slapshot’s owners will also be entitled to a separate earn-out payment of up to C$500,000 based on the revenue performance of Slapshot for the 12-month period following closure of the deal.
This earnout figure is payable on a quarterly basis in the form of NorthStar Gaming shares with a deemed value equal to the greater of a 20-day volume-weighted average price calculated at the end of each applicable quarter; and at $0.45 per share.
NorthStar has said the aim of the transaction is to expand its reach in the Canadian market outside of Ontario, where it has an online gaming license and operates, as well as to “materially expand” the addressable market open to the firm through a relationship with Spreads.ca.
Spreads.ca is an igaming site owned and operated by First Nations operator the Abenaki Council of Wolinak.
“This strategic acquisition is highly complementary to NorthStar’s current online casino and sportsbook offering,” the firm said in a statement.
It is understood Spreads.ca will not be made available in Ontario, and NorthStar Bets will continue to be the only online casino and sportsbook offered by NorthStar in the Ontario market.
NorthStar CEO and founding partner Michael Moskowitz welcomed the deal and the possibilities for the firm in the wider Canadian market.
“The acquisition of Slapshot expands our ability to enter new markets faster as we look to introduce NorthStar Bets to consumers across the country,” Moskowitz said.
“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,” he added.
Playtech invested C$12.25m into NorthStar in February as part of the firm’s reverse merger with Baden Resources, and also extended its commercial agreement with the Ontario-based operator.
As part of the investment, Playtech CFO Chris McGinnis joined the board of directors at NorthStar, acting as the company’s representative in the role of non-executive director.