Better Collective has just established a strong position within the esports betting market with the acquisition of HLTV.org ApS today.
The acquisition included the assets HLTV.org and dust2.dk. Both platforms extremely popular with esports enthusiasts. The purchase price is agreed at up to 34.5 mEUR (257 mDKK) on a cash and debt free basis. Out of the total purchase price, 26.4 mEUR (197 mDKK) will be paid upfront, of which 23.7 mEUR (177 mDKK) in cash and shares of Better Collective A/S with an approx. market value of 2.7 mEUR (20 mDKK) to be issued no later than March 13, 2020. The share price of 90.26 SEK is determined as a weighted average over 10 trading days prior to closing.
Securing a stronger position within the esports industry
Founded in 2002 in Denmark, the esports platform HLTV.org is a leading CS:GO site providing news from the esport industry, CS:GO match information and player and team rankings to the global esports audience. On average, the website has more than 26.5 million visits per month and also hosts a fantasy section, where the community users compete against each other through virtual teams consisting of real CS:GO players that community users pick for their individual team. Points are given to the virtual teams dependent on the real life performance by the CS:GO players.
Dust2.dk was founded in 2016 and is the leading CS:GO community in Denmark. The site provides news and interviews from the esports industry, live scores on CS:GO matches and also hosts Denmark’s official Top 10 CS:GO team list. On average, the website has more than 250,000 visits per month.
Martin Rosenbæk, CEO of HLTV.org Aps, said:
“Joining the Better Collective group will support our ambition to remain the preferred CS:GO brand for esports enthusiasts across the world. Esports is an industry that is rapidly growing and evolving and, through constructive discussions with the Better Collective management, it became clear that they are the optimal partner for us to realize the full potential of our platforms.”
During the last financial year, from July 1st 2018 to June 30th 2019, the platforms generated approximately 5 million EUR in revenues with earnings before tax of approximately 3,5 mEUR. Better Collective will consolidate the acquired company into the Better Collective Group accounts as from March 1, 2020. The founders of HLTV.org ApS will continue as daily management for at least three years to ensure the continued strong development of the platforms and communities.
Jesper Søgaard, CEO of Better Collective, says:
“We have carefully analysed and monitored esport for a long time. It is a rapidly growing industry and we consider esports an ideal extension to our sports focused business. The nature of esports betting differs significantly from traditional sports betting and, therefore, it was essential to find the right partner, adding deep know-how and industry knowledge to Better Collective.”