Ontario-owned gaming brand NorthStar Gaming has acquired Canadian sports betting marketing company Slapshot Media, to expand the business outside of Ontario.
NorthStar Gaming is a made-in-Ontario casino and sportsbook gaming platform and the business is now looking to grow beyond the region. Slapshot Media is a Canadian iGaming marketing company that specializes in providing managed services to Spreads.ca, an iGaming site.
NorthStar has entered an agreement to acquire 100% of the issued and remaining shares of Slapshot Media. The goal of this transaction is to open up the remaining Canadian market and strengthen its relationship with Spreads.ca
Spreads.ca is not and will not be made available in Ontario, and NorthStar Bets will continue to exclusively be the only online casino and sportsbook offered by NorthStar in Ontario.
Michael Moskowitz, CEO and Founding Partner, NorthStar said: "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."
Under the terms of the agreement, NorthStar is to acquire 100% of Slapshot's issued and outstanding shares for CA$1.8M (US$1.32M), payable in 3,272,727 common shares of NorthStar at a deemed value equal to CA$0.55 per share.
The vendors of Slapshot will also be entitled to a separate earn-out of up to C$500,000 based on the revenue performance of Slapshot for the 12 months following the closing; payable quarterly in NorthStar common shares with a deemed value per share equal to the greater of (i) a 20-day volume weighted average price calculated at the end of each applicable quarter; and (ii) $0.45 per share.
